bus 680 Week 1 Replies needed

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One Training in Organizations

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Learning Objectives After reading this chapter, you should be able to:

Describe the components of a general open systems model.

Describe how an open systems model applies to the training unit of an organization.

List and describe the interrelationships among the �ive phases of the training process model.

Explain how the training model can be applied to organizational improvement and problem solving.

Describe the challenges/opportunities facing training.

De�ine key terms used in the training literature.

Describe the bene�its of integrating organizational development and training principles.

Describe the differences in how small and larger businesses might implement the training process model.

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Case: Taking Charge at Domtar: What It Takes for a Turnaround* (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i8#ch01fnt02)

Domtar is the third largest producer of uncoated freesheet paper in North America. In the decade prior to 1996, Domtar had one of the worst �inancial records in the pulp and paper industry. At that time it was a bureaucratic and hierarchical organization with no clear goals. Half of its business was in “trouble areas.” Moreover, the company did not have the critical mass to compete with the larger names in the �ield. The balance sheet was in bad shape, and the company did not have investment-grade status on its long-term debt.

In July of 1996, Raymond Royer was named president and chief executive of�icer (CEO). This was quite a surprise because, although Royer had been successful at Bombardier, he had no knowledge of the pulp and paper industry. Many believed that to be successful at Domtar, you needed to know the industry.

Royer knew that to be effective in any competitive industry, an organization needed to have a strategic direction and speci�ic goals. He decided to focus on two goals: return on investment and customer service. Royer told Domtar executives that to survive, they needed to participate in the consolidation of the industry and increase its critical mass. The goal was to become a preferred supplier. The competitive strategy had to focus on being innovative in product design, high in product quality, and unique in customer service. At the same time, however, it had to do everything to keep costs down.

When Royer took over at Domtar, he explained to the executive team that there were three pillars to the company: customers, shareholders, and ourselves. He noted that it is only “ourselves” who are able to have any impact on changing the company. He backed up his words with action by hiring the Kaizen guru from Bombardier. Kaizen, a process of getting employees involved by using their expertise in the development of new and more effective ways of doing things, had been very effective at Bombardier. Royer saw no reason why it would not be successful at Domtar. Royer also knew that for the new strategic direction and focus to be successful, everyone needed to both understand the changes being proposed and have the skills to achieve them. The success of any change process requires extensive training; therefore, training became a key part of Royer’s strategy for Domtar.

This last point re�lects the belief that it is the employees’ competencies that make the difference. The Domtar Difference, as it is called, is re�lected in the statement, “tapping the intelligence of the experts, our employees.” Employees must be motivated to become involved in developing new ways of doing things. Thus, Domtar needed to provide employees with incentives for change, new skills, and a different attitude toward work. The introduction of Kaizen was one tactic used to achieve these goals.

Training at Domtar went beyond the traditional job training necessary to do the job effectively and included training in customer service and Kaizen. This is re�lected in Domtar’s mission, which is to

meet the ever-changing needs of our customers,

provide shareholders with attractive returns, and

create an environment in which shared human values and personal commitment prevail.

In this regard, a performance management system was put in place to provide a mechanism for employees to receive feedback about their effectiveness. This process laid the groundwork for successfully attaining such objectives as improving employee performance, communicating the Domtar values, clarifying individual roles, and fostering better communication between employees and managers. Tied to this were performance incentives that rewarded employees with opportunities to share in the pro�its of the company.

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Has Royer been successful with his approach? First-quarter net earnings in 1998 were $17 million, compared with a net loss of $12 million for the same time period in 1997, his �irst year in of�ice. In 2002, third- quarter earnings were $59 million and totaled $141 million for the year. That is not all. Recall his goal of return on equity for shareholders. Domtar has once again been included on the Dow Jones sustainability index. Domtar has been on this list since its inception in 1999 and is the only pulp and paper company in North America to be part of this index. To be on the list, a company must demonstrate an approach that “aims to create long-term shareholder value by embracing opportunities and managing risks that arise from economic, environmental, and social developments.” On the basis of this, it could be said that Royer has been successful. In 2003, Paperloop, the pulp and paper industry’s international research and information service, named Royer Global CEO of the year.

It was Royer’s sound management policies and shrewd joint ventures and acquisitions that helped Domtar become more competitive and return their long-term debt rating to investment grade. However, joint ventures and acquisitions bring additional challenges of integrating the new companies into the “Domtar way.” Again, this requires training.

For example, when Domtar purchased the Ashdown Mill in Arkansas, the management team met with employees to set the climate for change. The plan was that within 14 months, all mill employees would complete a two-day training program designed to help them understand the Domtar culture and how to service customers. A manager always started the one-day customer focus training, thus emphasizing the importance of the training. This manager returned again at lunch to answer any questions as the training proceeded. In addition, for supervisor training, each supervisor received skill training on how to effectively address employee issues. How successful has all this training been? Employee Randy Gerber says the training “allows us to realize that to be successful, we must share human values and integrate them into our daily activities.” The training shows that “the company is committed to the program.” Tammy Waters, a communications coordinator, said that the training impacted the mill in many ways and for Ashdown employees it has become a way of life.

The same process takes place in Domtar’s joint ventures. In northern Ontario, Domtar owns a 45 percent interest in a mill, with the Cree of James Bay owning the remaining 55 percent. Although Domtar has minority interest in the joint venture, training is an important part of its involvement. Skills training still takes place on site, but all management and teamwork training is done at Domtar’s headquarters in Montreal.

Royer’s ability to get employees to buy into this new way of doing business was necessary for the organization to succeed. Paperloop’s editorial director for news products, Will Mies, in describing why Royer was chosen for the award, indicated that they polled a large number of respected security analysts, investment of�icers, and portfolio managers as well as their own staff of editors, analysts, and economists to determine a worthy winner this year. Raymond Royer emerged a clear favorite, with voters citing, in particular, his talent for turnaround, outstanding �inancial management, and consistently excellent merger, acquisition, and consolidation moves as well as his ability to integrate acquired businesses through a management system that engages employees. Of course, that last part, “a management system that engages employees,” could be said to be the key without which most of the rest would not work very well. That requires training.

* (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i8#r__ch01fnt02) Swift, A. “Royer’s Domtar turnaround.” Financial Post (October 6 2003), FP3. Allen, B. 2003. The Domtar difference. www.pimaweb.org/conferences/june2003/BuddyAllen.pdf. Anonymous (January 2001) Partnership between Domtar and Cree First Nations brings results. www.diversityupdate.com. Richard Descarries, Manager, Corporate Communications and External Relations, Domtar, personal communication (2004).

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Overview of Training Everyone in an organization is affected by training. Everyone receives training at one time or another, usually multiple times. Managers and supervisors need to be sure that their direct reports have the competencies required to perform their jobs. Subject matter experts (managers and others) are asked to provide training. Signi�icant budget dollars are allocated to training employees. Although the US economy has suffered signi�icant losses over the last several years, companies still dedicate substantial resources to employee learning. In 2010, it is estimated that over $171.5 billion was invested in training activities. Most ($103 billion) was devoted to internal training services, with the rest allocated to external providers. The average expenditure\ per employee increased from $1,081 in 2009 to 1,228 in 2010. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_01)

Why do companies continue to invest in training, even in the most dif�icult economic times? Evidence shows that companies investing more in training produce improved �inancial results in terms of higher net sales, gross pro�its per employee, stock growth, and ratio of market to book value. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_02) For example, in a Mutual of Omaha study, it was determined that those with higher levels of training generated, on average, an additional $150,000 of new business premium each year. However, training doesn’t always lead to an improved bottom line. Many companies report that they perceive little value from their training initiatives. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_03) Obviously, companies that report very positive improvements are using more effective training practices than those that do not. Effective training differs from ineffective training in terms of the processes used to determine what employees need to learn and how training is designed and implemented. The �irst three chapters of this book provide you with an understanding of the context and theoretical foundation on which effective training is based. Chapters 4 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i48#ch04) through 8 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i113#ch08) provide you with an in- depth understanding of how to determine training needs and how to design, develop, and implement training to meet those needs. Even companies that have reported unsatisfactory results from their training efforts are doing at least one thing right—they are evaluating their training and can take corrective action. Companies that don’t evaluate their training don’t have a clue about its effectiveness. We believe that it is useful, �irst, to give an overview of what an effective training unit should accomplish in an organization. This chapter and the next cover a broad set of organizational issues that provide the context for developing and implementing effective training. As we discuss this context, we will be referring back to the Domtar case from time to time, to illustrate in concrete ways how training relates to organizational effectiveness.

Training System and Processes Training provides employees with the knowledge and skills to perform more effectively. This allows them to meet current job requirements or prepares them to meet the inevitable changes that occur in their jobs. However, training is only an opportunity for learning. What is learned depends on many factors, such as the design and implementation of training, the motivation and learning style of the trainees, and the organization’s learning climate.

Training is also part of an integrated system in which performance is measured against criteria (best practices benchmarks) that are tied to strategic objectives. Training is used extensively to help employees understand how they can assist in meeting corporate objectives. Clearly, Domtar knows that. Recall, when Domtar purchased the Ashdown Mill, training was an immediate focus. Within 14 months, all mill employees completed a two-day training program so they would understand Domtar’s culture and know how to service customers in the appropriate manner. Always having a manager kick off the training and later return to answer questions shows the importance Domtar attached to training. But effective training requires more than just

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having key managers available. It requires that effective systems are in place to address the performance issues facing the organization. With that in mind, we turn to the design of an effective training system.

Training as an Open System Figure 1-1 shows a general open systems model (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_001) . (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_04) Open systems have a dynamic relationship with their environment; closed systems do not. Obviously, a business must interact with its environment, making it an open system.

As Figure 1-1 indicates, an open system depends on the environment for the input that supports the system. A business, for example, needs raw materials, capital, and employees in order to operate. The environmental inputs are transformed into outputs by the system’s processes. For a business, these would include its products and services. The system’s outputs �low into the environment and might or might not in�luence future inputs into the system. In effective systems, the system output in�luences the environment to supply new supportive input to the system.

Figure 1-1 General Open Systems Model

A system, such as a business, must be responsive to the needs and demands of its environment because the environment provides the input needed for the system to replenish itself. Forexample, if a business is responsive to the needs of society by providing valued goods and services (output), it receives �inancial and goodwill credits (input). The business uses these inputs to continue operating. If the business does not provide suf�icient value to its environment, it will fail because the environment will not provide the necessary input for the system to replenish itself.

Many open systems exist as part of another open system and, therefore, are called subsystems of that larger system. For example, a product assembly system is a subsystem of a manufacturing system, which itself is a subsystem of the company, which is a subsystem of the industry, and so on. Training can be seen as a subsystem within the larger human resources (HR) unit, which itself is a subsystem of the company. Figure 1-2 illustrates some of the exchanges that take place between the training system and the larger organizational system. The organization’s mission, strategies, resources, and the like, all represent sources of input into the training subsystem. Of course, if the training department is part of a larger HR function, then these inputs would be �iltered through that system. Organizational and employee needs, training budgets, staff, equipment, and so forth, are all inputs from the organization to the training subsystem. Training processes transform these inputs into usable output for the organization (improved knowledge, skills, and attitudes; job performance; and so on). Looking at the training unit from an open system perspective shows how interconnected training activities are with what is happening elsewhere in the organization. The point here is that the organization invests money in the training function, for which it expects a favorable return. Periodically, the organization will examine the returns from training and determine whether the training system is working properly and what further investment is appropriate. Training in Action 1-1 demonstrates the consequences of a poor match between the training system and the organizational environment.

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Figure 1-2 Training as an Open System

The Training Process Model This book will take you through the complete training process as it would be conducted under ideal conditions. Unfortunately, most organizations do not operate in ideal conditions. Insuf�icient �inancial resources, time, and training professionals represent just a few of the challenges faced by most companies. Recognizing these limitations, we also provide variations to training practices and systems that, although not ideal, do a reasonable job of accomplishing training objectives (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_002) . Of course, these shortcuts exact a price, and we identify the major consequences associated with these shortcuts. Thus, we try to provide both “ideal” and more practical approaches to implementing the training processes. Nonetheless, even in less-than-ideal conditions, all of the training processes are critical to the success of training. Although less-than-ideal methods may be used to carry out the training processes, elimination of one or more of the processes places the entire effort at grave risk.

1-1 Training in Action Team Building Sizzles, then Fizzles The director of a city utilities department felt that creating employee problem-solving teams would improve the quality of operations and the ef�iciency of the department. All employees were provided the opportunity to participate in team-building and problem-solving training. About 60 percent of the employees, including the director and his management group, signed up for the training. Three-hour training sessions took place once a week for ten weeks. Working on a common process within their department, employees were grouped into teams for three weeks of team-building training and seven weeks of problem-solving training.

At the beginning of the problem-solving training, each team identi�ied a problem in its area of operation. Each team then worked through the problem as they progressed though each step of the training. The team members were delighted to be learning new skills while working on a real problem. By the end of training, each group actually solved, or made signi�icant progress toward solving, the problem it was working on. Evaluations taken at the conclusion of training indicated that trainees enjoyed the training and understood the steps, tools, and techniques of team building and problem solving. The director was pleased with the results and submitted a report documenting the successes of the training to the city manager.

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Follow-up evaluation conducted six months later showed only one team still in operation. The other teams fell apart for various reasons, such as excessive workloads, little recognition being given when problems were solved, nontrained employees resisting making changes in work processes, or teams being ridiculed by those who had not participated in training. Clearly, the training did not achieve the desired outcomes. If the director had understood the system and what was and was not rewarding, a more successful outcome could have been achieved. By using the analysis phase of the Training Process Model, the relevant aspects of the system would have been identi�ied and adjustments to either the system or the training could have been made.

Effective training is not just running a lot of people through a lot of training programs. To view training this way is shortsighted. Instead, training should be viewed as a set of integrated processes in which organizational needs and employee capabilities are analyzed and responded to in a rational, logical, and strategic manner. When training is conducted this way, both the employees’ and organization’s performance will improve. This will increase the value of the training unit, and, as a result further investment in training is likely to occur. Our model of training processes, depicted in Figure 1-3, re�lects this approach.

Figure 1-3 Training Processes Model

Figure 1-3 is merely an overview of the process. A more detailed �igure for each phase is provided at the beginning of each relevant chapter, with the input and output of each process described in considerably more detail. Our model is an adaptation of what has become widely known as the ADDIE (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_003) model. ADDIE is an acronym for the major processes of training: Analysis, Design, Development, Implementation and Evaluation. Many, including your authors have attempted to �ind the original source for this model, but apparently there is no single source. It seems to have evolved over time to become an umbrella term without a fully articulated underlying structure. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_05) Like others, we have used ADDIE as the generic basis for our own model of how training should proceed. In the following paragraphs, we will brie�ly describe each of the ADDIE phases and their relevant inputs and outputs. This model is used extensively throughout the book , so it is important to be familiar with it.

The training process begins with some type of triggering event. A triggering event (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_004) occurs when a

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person with authority to take action believes that actual organizational performance (AOP) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_005) is less than the expected organizational performance (EOP) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_006) . For example, the quality standard (the EOP) at Company X is three rejects per thousand. An examination of the data for the previous month indicates that the actual quality level (AOP) was 17 rejects per thousand. If a person with authority to take action sees this gap as a concern, it would trigger an analysis of why the number of rejects is so high. This analysis is discussed next.

Analysis Phase The analysis phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_007) begins with the identi�ication of the organizational performance gap (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch04_004) (AOP is less than EOP). Things such as pro�itability shortfalls, low levels of customer satisfaction, or excessive scrap are all examples of a current performance gap. Another type of performance gap is future oriented. Here, the company is seen as likely to perform poorly in thefuture unless changes are made. For example, if an organization wanted to install robotic equipment in six months but employees were not able to program the robots, then there is an expected performance gap in the future. Once a performance gap exists, the cause must then be determined.*

* There are often multiple causes of a performance gap, but we are using a single cause here for simplicity.

Once the cause is determined, and its elimination is believed to be important, the elimination of the cause becomes a “need” of the organization.

The analysis phase is often referred to as a training needs analysis (TNA) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_009) . However, both training and nontraining needs are identi�ied with this process, so it is incorrect to say it only focuses on training needs. The cause of the performance gap might be inadequate knowledge, skills, or attitudes (KSAs) of employees. If so, then training is a possible solution. However, KSA de�iciencies are only one of many reasons for performance gaps. Other reasons, such as motivation or faulty equipment, must be separated from KSA de�iciencies, as these are nontraining needs and require a different solution. In the analysis phase, the causes of a performance gap are identi�ied, whether due to KSAs or something else. Those performance gaps caused by KSA de�iciencies are identi�ied as “training needs” because training is a solution. All other causes are de�ined as nontraining needs, and require other types of solutions.

The analysis phase also attaches priorities to the training needs that are identi�ied. Not all needs will have the same level of importance for the company. This process of data gathering and causal analysis to determine which performance problems should be addressed by training is the analysis phase of the training process. It will be discussed in great detail in Chapter 4 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i48#ch04) .

Design Phase The training needs identi�ied in the analysis phase, as well as areas of constraint and support, are the inputs to the design phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_010) . An important process in the design phase is the creation of training objectives. These provide direction for what will be trained and how. They specify the employee and organizational outcomes that should be achieved as a result of training and become inputs to the development and evaluation phases of the model. As such they become the evaluation objectives.

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Another part of the design process is determining how the organizational constraints will be addressed by the training. Finally, identifying the factors needed in the training program to facilitate learning and its transfer back to the job are key outcomes from the design phase. All of these factors are used to create the guidelines for how the training will be developed. The design phase is the topic of Chapter 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) . Chapters 6 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i84#ch06) and 7 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i100#ch07) provide detailed descriptions of the various methods that can be used to deliver the content of the training.

Development Phase Development (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_011) is the process of using the guidelines from the design phase to formulate an instructional strategy that will meet the training objectives. Obtaining or creating all the things that are needed to implement the training program is also a part of this phase. The instructional strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch08_001) describes the order, timing, and combination of methods and elements to be used in the training program to meet the objectives. The training objectives provide the focus for program development and the guidelines from the design phase set the parameters for what will and will not work. Outputs from this phase are all of the things needed to implement the training program. These include the speci�ic content for of the training, instructional methods used to deliver the content, materials to be used, equipment and media, manuals, and so forth. These are integrated into a coherent, well-organized training plan focused on achieving the training objectives. These outputs of the development phase serve as inputs to the implementation phase. Both the development phase and the implementation phase are the focus of Chapter 8 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i113#ch08) .

Implementation Phase All the previous phases of the training process come together during the implementation phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_013) . It is useful to conduct a dry run or even a pilot of the program before actually delivering the training. This dry run, or pilot program, allows for the testing of the training to determine if any modi�ications are necessary before it is ready to go live. Chapter 8 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i113#ch08) addresses the key aspects of the dry run and delivery of the training.

Evaluation Phase Although we discuss this phase of the model last, it actually begins during the development phase. Recall that evaluation objectives are an output of the design phase. In the design phase the training objectives were identi�ied, and these were used in the development phase to create the instruments and measures that will be used to evaluate the training. These become inputs to the evaluation phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_014) . More input comes from the organizational constraints. Time, money, and staff all affect how training is evaluated. Two types of evaluation are useful. First, process evaluation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch09_002) determines how well a particular training process achieved its objectives (i.e., outputs). In other words, did the trainer follow the exact training process suggested? For example, if role-plays were in the design, were they used properly? Collecting and analyzing process data can provide early warning of potential problems in the training program.

Outcome evaluation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch09_001) is the evaluation conducted at the end of training to determine the effects of training on the trainee, the job, and the

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organization. This type of evaluation uses the training objectives as the standard. Outcome evaluation can also be used to improve training processes. Outcome evaluation data by themselves do not provide enough information for program improvement, but in combination with process evaluation data, they serve as a powerful tool for improving programs. For example, if one or more objectives are not achieved, the training process evaluation data can then be used to identify problems in the process and corrective action can be taken. Chapter 9 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i125#ch09) provides a detailed discussion of the evaluation process.

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Trends in Training The business environment in North America will continue to change rapidly. These changes bring both challenges and opportunities. Successful companies in most industries must constantly realign their activities to meet new conditions while remaining true to their mission and strategic direction. As companies adapt, their training function also needs to adapt. Multiple surveys over the last several years have asked HR executives and human resource development (HRD) managers to identify their organization’s needs for the next several years. These are the major trends in training. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_06)

Aligning training with business strategy

Advances in Technology

Managing talent due to changing demographics

Improving the training function

Quality

Legal issues

Each of these issues is discussed in subsequent paragraphs in terms of the opportunities and challenges it presents to the training function. The ways in which companies are addressing these issues are covered in more depth in Chapter 10 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i141#ch10) , Key Areas of Organizational Training.

Aligning Training with Business Strategy For the past �ive years, virtually all the surveys show that aligning training with business strategy is a top priority not only of training managers, but also of HR managers and other business executives. Why is it such a high priority? First, it is only in the last decade that reliable evidence of training’s impact on the bottom line has surfaced. Second, and just as important, the business environment over the last decade has been changing rapidly, and all signs indicate that this will continue. Most companies will need to continuously realign their activities to meet new conditions. This requires people at all levels in the organization to be able to make day-to- day decisions that support the business strategy. Training initiatives will need to support the strategic direction of the company and the people who carry it out. Organizations now realize that effective training is a tool for getting better job performance, better bottom-line results, and creating organization-wide adaptability.

What actions did Domtar take to align its training with its business strategy? One component was the institution of Kaizen methods and the associated training. This aligns with the strategic goal of “tapping the intelligence of the experts, our employees.” Was the money Domtar spent on this training worth it? It would seem so. Using the Kaizen approach, employees developed a new way of cutting trees into planks. The result was fewer wood chips to transport and more logs produced per tree. Since 1997, it is estimated that Kaizen has saved Domtar about $230 million in production costs. Two of their mills are among the lowest-cost mills in North America. Clearly, the training at Domtar was aligned with its strategic goals.

Companies are now realizing that worker knowledge is a competitive advantage and that training is a strategic tool. As Angela Hornsby, V.P. of learning and development at Carlson Restaurants Worldwide, says: “Things are changing so much more quickly these days, and companies have to adapt so much faster than before to remain competitive. The fact is that one of the most powerful tools we have at our disposal to change performance and help people to adapt more readily to that change is learning.” (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_07) Even though aligning training with business strategy is an important goal, it isn’t as easy to do. We will discuss this in more

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depth in Chapter 2 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i19#ch02) , providing suggestions for how to meet this challenge and take advantage of the opportunities it affords.

Advances in Technology The second biggest issue for training executives to deal with is the rapid advances being made in learning technologies. In addition to advances in Learning Management Systems, Intelligent Tutoring, interactive multimedia, and other tools that have been around for a decade or more, new possibilities for designing and delivering training programs are expanding exponentially. We will discuss these in depth in Chapter 7 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i100#ch07) , so here we only identify some of the opportunities/problems these create for training executives and designers. The advent of Web 2 technologies can be applied to the design and delivery of training in a way that enhances trainees’ involvement and learning. Tools such as blogs, Twitter, Facebook, MySpace and Linkedin offer ways to enhance or in some cases replace the traditional training that occurs in a classroom and even some earlier types of electronic-based training. Following are some of the ways these Web 2 applications can be used:

Social networking can provide support for on-the-job training.

Social networking and Web 2.0 tools can engage trainees before and after they attend a session and can be used to reinforce learning back on the job.

An online community can be created for trainees for reference, sharing information, and posting best practices. This allows trainees to continue learning beyond the classroom.

Blogs can be used to post examples and applications that keep participants engaged in the topic area.

Additionally, advances in mobile-device technology allow trainees to take all of these Web 2.0 tools, applications and more with them wherever they go.

Training executives must develop strategies for utilizing the available technology in ways that meet their business’ needs. Too often in the past, training executives have jumped on the latest technology bandwagon, only to �ind it wasn’t going where they wanted to go. The lessons learned from those early adopters provide a clear message of caution. However, the potential bene�its of these technologies mean that a careful analysis needs to be made. The problem is the technologies keep morphing at such a rapid pace, it becomes very dif�icult to keep up.

Managing Talent Due to Changing Demographics Major demographic shifts have occurred in North America that affect businesses now and will for the next 15 years. Principal among these demographic shifts are as follows:

Increased gender, ethnic, and age diversity in the North American workforce

Aging of the population (baby boomers)

Diversity Hispanics will soon become the largest minority group in the U.S. workforce. While all other minority groups are increasing in size, the percentage of Caucasians is expected to decrease. The number of women will increase to about 50 percent of the workforce. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_08) Increased diversity brings both the opportunity for new ways of approaching business issues and the challenge of �inding ways to integrate these differing perspectives. We will discuss the legal side of diversity in the “Legal Issues” section. Along with more diversity in terms of gender, ethnicity, and so forth, the workforce is becoming more

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diverse with respect to age. Four distinct generations are currently in the workforce. Each generation has a different set of values relating to the role of work in their life. The average age of the population is increasing with about 14 percent of the labor market aged 55 or older. By 2015, over 20 percent are expected to be in this range. As these people retire from their jobs, many will return to the workforce on a part-time basis because of the demand for knowledgeable workers and the insecurity of retirement income. However, these people will not be looking for traditional full-time jobs. Rather, they will be looking for jobs that allow them to enjoy signi�icant periods of time away from job responsibilities. Younger workers want a more balanced work and nonwork life and are more conversant with technologies that allow them to work from anywhere. We are seeing more training focused on building bridges between the older managers and the younger subordinates and programs for team skills that focus on cooperation and problem solving. In general, there are increasing demands for these programs to be aligned with business goals rather than focusing on diversity for its own sake.

Developing the Right Talent Some have suggested that most companies, now or in the near future, will face a severe shortage of all types of labor. The worldwide economic recession that began in 2008 has certainly eliminated that concern, at least in the near term. Nonetheless, it is now and will continue to be important for most businesses to secure workers with the right skill sets. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_09) Baby boomers with the highest knowledge and skill levels will be the ones most likely to leave the workforce, as they will have higher levels of retirement income. Because of changes in technology, job design, and the like, it is estimated that more than 75 percent of the workforce needs retraining just to keep up with the changes in their current jobs. It is projected that the forces identi�ied earlier will combine by 2020 to create a shortage of 20 million workers, especially in jobs that require the most skill and provide the highest economic value. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_10) A survey of senior executives in manufacturing �irms indicates that replacing retiring skilled workers will cost their companies up to $20 million a year and will continue for at least �ive years. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_11) , (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_12) Where will the needed talent come from in the next few years? The traditional source of talent coming out of the colleges and technical schools will be fought over �iercely, because there won’t be enough to go around. To make up the shortage, many companies will create their own talent. For example, in 2005, Hewlett-Packard addressed this issue by increasing their training budget by 16 percent, bringing the total to $300 million. Raytheon Vision Systems realized that over 35 percent of their workforce would be eligible to retire by 2009. This not only would create a huge loss of people, but also would represent a critical loss of institutional knowledge. Many of those set to retire were the inventors of the knowledge. Raytheon set up a “Leave a Legacy” program, pairing vital-knowledge experts with high-potential subordinates in mentoring relationships. In addition to the shortage of new talent, existing employees will need training to keep up with the changes brought on by new technologies. Thus, in many organizations, you will �ind the training function focusing on the following types of initiatives:

Programs that focus on the recruiting and selection process (such as recruiter training, behavioral based interviewing, etc.)

Programs that improve retention of knowledge workers (e.g., orientation, performance review)

Programs that assess and track job requirements and employee competencies (HRIS systems)

Development of innovative knowledge delivery systems that increase the speed with which knowledge is obtained and provide an increased breadth of training opportunities is another way in which companies are creating more knowledgeable workers more quickly (computer-based and other electronic forms of training)

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In addition to technological innovation, the competitive environment demands that organizations continuously upgrade the knowledge of their workforce. Consumer demands for higher-quality products and services and the �iercely competitive global economy require employees at every level who are more knowledgeable, more committed to quality, show better judgment, and demonstrate more competencies than ever before.

Tied to the increased level of knowledge expected of all workers is the speed with which knowledge is acquired. In today’s competitive business environment, most companies have minimized the time it takes to move a product from the idea stage to the marketplace. This, however, puts great strains on the ability of the employees to be up to speed on the new products and production processes. The smart companies are now making “time to knowledge” as important as “time to market.” By getting the training department involved early in the product development stage, companies are able to provide just-in-time training and increase the breadth of training opportunities.

Training in Action 1-2 describes how the United Farm Workers union was able to work with farm owners and managers to create more knowledgeable farm workers. This is especially interesting since many unions have resisted increased knowledge requirements for the jobs they represent.

Quality and Continuous Improvement Training must be seen as an integral part of the organization’s performance improvement system. If not, it will continue to be seen as a cost center, providing less valued contributions to the organization. Training was a critical part of Domtar’s change process. It helped educate employees regarding the mission, strategy, and objectives of the organization and how these objectives

translated to each employee’s job behaviors. Experienced trainers know that effective training is structured as a continuous performance improvement process that is integrated with other systems and business strategies, just as at Domtar. While several models exist for continuous improvement, common to them all are the following:

Identi�ication of performance improvement opportunities and analysis of what caused the opportunity to exist (gap analysis)

Identi�ication of alternative solutions to the opportunity and selection of the most bene�icial solution. A training program is one of many possible performance improvement solutions

Design and implementation of the solution (training if it is one of the selected solutions)

Evaluation of results to determine what, if any, further action should be taken

Each of these steps matches well when placed against the Training Process Model. That is because effective training is a continuous performance improvement process. Training does not stop and start with each program. The training function in organizations continuously searches for performance improvement opportunities, develops and implements solutions, and evaluates the effectiveness of the solutions.

Quality improvement is a key component of most continuous improvement processes. High-quality products and services are necessary to stay in business in today’s competitive markets and thus have high priority for most businesses. This is especially true for businesses that provide products or services directly to other businesses. Typically, these companies must demonstrate the quality of their products through quality systems developed by the purchasing company or by some globally accepted agency. For example, the major automobile manufacturers impose their quality systems on suppliers. The International Organization for Standardization (ISO) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_017) , located in Geneva, Switzerland, developed a set of worldwide standards to ensure consistency in product quality by all companies that become certi�ied. In general, there are �ive stages in the certi�ication process:

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1. Preaudit: assessing how you are doing now

2. Process mapping: documenting the way things are done

3. Change: developing processes to improve the way things are done to reach a desired level of quality

4. Training: training in the new processes

5. Postaudit: assessing how well you are doing after the changes and continuing the improvement process

Once certi�ied, there are continuing audits to ensure company compliance with the standards. Thus, training is an important part of attaining ISO certi�ication and is required on a continuous basis to maintain certi�ication. The certi�ication process also helps improve training. A research study showed improvements in TNA, design, delivery methods, and evaluation following certi�ication. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_14) This study also found that these companies provided more hours and more types of training and had a larger training budget following certi�ication.

In addition to improved training processes, companies with ISO certi�ication also �ind the following advantages: (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_15)

Improved ef�iciency

Higher productivity

Better internal communication

Improved quality image and market competitiveness

Increased customer preference

Increased awareness of opportunities for process and quality improvements

Reduced costs and improved ability to document quality control processes to their customers

Glen Black, president of the Process Quality Association in Canada, compared ISO-certi�ied companies with those not certi�ied. He found that certi�ied companies are six times less likely to experience bankruptcy, average 76 percent lower warranty costs in customer-discovered defects, and allow 36 percent less bureaucracy within their company structure. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_16) A cost comes with achieving these bene�its, however. Once the company makes the decision to seek certi�ication, it must be prepared to engage in a substantial amount of training that can be costly. Furthermore, training is only one part of the overall cost, so each business must determine whether the costs of ISO certi�ication are justi�ied by the bene�its.

1-2 Training in Action FIELD Partners with Growers (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_13)

A more knowledgeable workforce is a double-edged sword for unions. On the one hand, union leadership demands that employers provide training for the rank and �ile to keep them up to date with modern operating methods. On the other hand, union leadership also understands that more knowledgeable workers improve the ef�iciency of the company, resulting in reductions in the size of the bargaining unit. A major challenge for the future is �inding a way for both the company and the union to prosper under intensely competitive conditions, where a knowledgeable workforce is a competitive advantage. Some progress in this area is evident from the development of partnerships between unions

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and employers to create education and training programs that develop less skilled employees and increase productivity. Even at the lowest levels of the agriculture industry, more knowledgeable workers can improve the bottom line. The Farmworker Institute for Education and Leadership Development (FIELD) serves as an intermediary between management and community organizations and provides direct training to both current employees and potential employees. FIELD was founded by the United Farm Workers (UFW) union to foster the economic and social prosperity of the low-income and low-skill farm workers and their families. Working in partnership with agricultural owners and managers, FIELD provides classroom training, educational literacy programs, and cross training to prepare workers for jobs in agriculture. It also provides training for those already employed, on the basis of employer needs. These programs include upgrading job skills, communication, quality management, leadership development, and con�lict resolution. For example, FIELD trained over 900 workers at seven companies in health and safety. FIELD also provides customized training, as it did for Monterey Mushrooms, a California-based distributor of fresh and processed mushrooms with a UFW workforce. The training developed by FIELD reinforced the company's "be the best" principles and encouraged collaboration and con�lict resolution. The company has bene�ited from the training with higher productivity and fewer accidents.

Legal Issues Equal employment opportunity, af�irmative action, sexual harassment, and related legislation have placed legal requirements on businesses regarding speci�ic types of training. You will learn in detail the training issues related to sexual harassment and equity (speci�ically related to females in nontraditional jobs, the glass ceiling, and the disabled) in Chapter 10 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i141#ch10) . In addition, trainers need to be aware of liability issues, copyright infringement, and other legal concerns. The discussion of these issues is not intended to provide technical legal information, but rather to provide a general (and understandable) description of the important legal issues related to training activities.

Equal Opportunity/Equity In North America, federal, state, or provincial law and associated court rulings provide the complex legal framework within which businesses must develop their HR policies and practices. Even though legislation initially focused on the selection of people into the organization, there are many areas related to training that also require attention. This is especially true as the legal battlegrounds have shifted from employment to career opportunities over the last decade. Since this is not a text on training liability issues, we will address the topic only in a general way. Those wishing a more in-depth coverage might want to read “Avoiding Legal Liability: For Adult Educators, Human Resource Developers, and Instructional Designers.” (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_17)

United States federal law makes it illegal to exclude people from training on the basis of gender, race, age (employees aged 40 or older), and disabilities. Generally, these categories are referred to as “protected,” as they belong to a “protected group.” Employers must make sure that criteria for selecting people into training programs are based on bona �ide job requirements (not race, gender, age, etc.). Employees targeted for promotion generally receive training and developmental experiences to prepare them for the new position. The legal issue here is that those in protected classes may claim that they did not receive the training needed to be promoted. In general, the law says that those in protected groups must be given equal opportunity for promotions. If members of a protected group can demonstrate that they have been adversely affected (e.g., fewer promotions, lower pay) because they did not receive training that was provided to those who received those bene�its (e.g., promotions), the burden of proof falls on the employer to demonstrate that its practices are

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job-related and consistent with business necessity. In the case of promotions, a company can avoid such claims by providing equal access to training for all employees in a job classi�ication. Once it is determined that someone in the classi�ication will be promoted, that person can receive additional training to prepare for the new position. The legal issue of equal opportunity then focuses on the selection process rather than the training opportunities.

For employees with disabilities (physical or mental), the employer must not only ensure equal opportunity for training, but also make reasonable accommodation. Reasonable accommodation means making training facilities and materials readily accessible and useable to those with a disability. Depending on the disability, this could include instructional media and/or providing readers. If the training is considered to be related to essential job functions and the disability prevents the person from participating in the training, then, unless undue hardship can be demonstrated, the employer is obligated to provide alternative training that develops the same set of competencies.

Not only do protected groups need equal access to training, they must receive equal treatment while participating in training. This means that the training must provide equal opportunities for learning, practice, and feedback.

Required Training Some training is required by law. Failure to provide this training will subject the company to sanctions from the courts or federal and state regulators. For example, the Occupational Safety and Health Act requires employers to provide periodic training on the handling of hazardous materials and the use of safety equipment. Flight crews on passenger airlines must complete a set of mandated training courses. In other cases, courts have ordered companies to provide speci�ic types of training to redress problems identi�ied in court proceedings. Companies that have lost employment discrimination cases have been ordered to provide diversity training, and those losing sexual harassment cases have been ordered to provide sexual harassment training.

In other cases, even though training is not legally required, it makes good legal sense to provide the training. In a 1999 ruling, Kolstad v. American Dental Association, the Supreme Court recognized the good-faith effort of employers to implement and enforce measures to prevent discrimination and harassment in the workplace. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_18) Essentially, the court found that even though an individual might behave in a manner that violated the federally protected rights of another employee, no damages would be awarded if the company was shown to have made a good-faith effort to prevent the activity. One component of such a good-faith effort is to provide training aimed at preventing the illegal behavior. Another component is the implementation of policy and procedure for addressing the behavior, should it occur, and �inally, the application of sanctions to individuals found to have engaged in the behavior. We discuss how this is done and provide examples in Chapter 10 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i141#ch10) . The number of sexual harassment claims has decreased over the last few years, but the number of discrimination claims of all types has remained steady.

In designing training programs to deal with discrimination and harassment, trainers need to avoid training that itself is discriminating or harassing. For example, in the early 1990s, it was documented that women aircraft controllers who had to walk down long aisles populated by their mostly male colleagues would �ind themselves subject to jeers and/or sexual comments, and, on occasion, would have their dresses pulled up. After repeated complaints about such behavior, the Federal Aviation Administration (FAA) arranged for training to be provided to its 8,000 employees. A part of the training involved men walking down a gauntlet of women coworkers, who now did the jeering, sexual commentary, and groping. It was intended that the men get a �irsthand understanding of what the women had experienced. One of the male participants was outraged by the experience. He stated that he did not treat others in this manner and did not expect to be treated that way himself. In the program he was accused, as a white male, of being in sexist denial. He complained to his supervisors in the FAA but little was done. Shortly thereafter, he �iled a $300,000 lawsuit for sexual harassment.

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He won, and the FAA’s director of training was �ired. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_19)

Liability for Injury or Illness Some types of training programs have the potential to cause physical or psychological injury or illness to participants. For example, some simulations that require trainees to use tools or equipment might cause injury if they are used incorrectly. Training in other instances might involve the use of chemicals that can cause illness if inhaled. In many states, the employer is responsible for �inancial damages resulting from injuries or illness caused by participation in training. This is true even if the training is provided by an outside vendor. Trainees need to be warned of any dangers associated with training, be trained in methods of preventing the dangers from occurring, and be provided with safety equipment. Employers are also liable for injuries to nonemployees resulting from a poorly or incorrectly trained employee.

Con�identiality An employee’s performance during and at the conclusion of training is con�idential in the same manner as other employee information. Thus, if performance in training is to be used in promotion or salary decisions, the employee must be informed that it will be used in that way. Unless permission has been granted, or the trainee is informed prior to training that such discussions would occur, trainers must also avoid discussion of the trainee’s performance with other employees.

Copyrighted Materials The use of any copyrighted material without the permission of the owner is illegal. If your training vendors infringe on the copyrighted material of others while providing your company with services, your company could be liable for damages. Thus, as the training manager, you would want to make sure that your contract with the vendor required the legal use of any copyrighted materials.

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Career Opportunities in Training In 2011, there were a little less than twelve training staff per 1000 employees for midsized companies. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_20) To understand the types of career paths training offers, it is necessary to understand how the training unit �its in the organization. This can vary considerably across organizations. For example, large companies typically separate management training and development from the training of the nonmanagement employees. Each of these areas might be further divided into more specialized activities. For example, the employee development area might contain separate units focused on training in customer service, employee orientation, health and safety, and each of the organization’s major operation areas (sales, manufacturing, etc.). If the company is very large, it might also have specialists working in evaluation and research, program design, materials development, and needs analysis. The person in charge of customer service training, for example, would work with specialists in these areas to do the following:

Determine the customer service training needs in the organization.

Develop training programs to meet those needs.

Develop materials to support the instructional methods to be used in the programs.

Evaluate the effectiveness of the programs.

Entry-level positions in a large company’s HRD department are usually at the specialist level. Thus, a new hire with little experience but a good education in the training area could start out as a materials designer or a stand-up trainer, depending on her KSAs. In a large organization, a career path might look like the one shown in Figure 1-4. The early rotation through the various specialist positions provides the novice trainer with �irsthand experience in all aspects of the training system. When a person has a solid grasp of the system (i.e., how it is “supposed” to work and how it “actually” works), she is able to supervise or coordinate one of the specialist areas. Some large companies also require their HRD personnel to spend time in a line position, to better understand the needs of line personnel. Thus, at some point in the career ladder pictured in Figure 1-4, the training practitioner could �ind himself supervising or working in a line operation for a period of 6 to 12 months, although this requirement is still fairly unusual. Supervisors will often also rotate across specialist areas before moving into a manager’s role, such as manager of employee development. After suf�icient experience and success as a manager, the trainer may be asked to assume responsibility for all training and development activity in the organization—the training executive position.

Figure 1-4 Career Path in HRD

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The smaller the organization, the greater the breadth of responsibility each person in the training unit will have. In a medium-sized company, with around 1,000 employees, the HRD activities of employee and management training may not be separated into separate units, but carried out by the same small group of people under the guidance of an HRD manager. Each individual is expected to perform all (or most) aspects of each of the activities. Smaller companies (100–300 employees) may not have an HRD or training department at all. Instead, a single individual may be responsible for all training activities. In even smaller businesses, many of the HR responsibilities, including training, are decentralized out to the line managers. HR departments may consist of only one or two people who handle the core HR activities and act as consultants and facilitators for the line managers in carrying out their HR responsibilities, such as training.

Another career path for a training and development professional is as a member of a training or consulting �irm. Requirements here vary greatly. There are a large number of one- or two-person consulting businesses that do training. These people market some core set of knowledge they have acquired through their work experience, education, or both. There are also some very large training or consulting �irms that operate on a national or global basis. These �irms hire specialists in certain areas such as instructional design, materials development, and evaluation. However, these �irms also prefer employees to have several years of experience as well as advanced degrees. Generally, they are able to recruit a suf�icient number of applicants who meet the experience and education requirements, because their compensation package is typically much better than that of the smaller �irms, although compensation levels vary considerably from �irm to �irm.

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Important Concepts and Meanings The literature in training and development, as in other professional disciplines, is continually evolving. As such, you will often �ind different meanings attached to the same terms. Thus, it is important for us to be clear about the terms and concepts we are using. It is also useful for you, the reader, to have a good understanding of how terms are commonly used in the �ield and how they will be used throughout the text.

The basic terms and concepts used throughout the book are de�ined in the glossary at the end of the book . However, the following terms are the foundation for all that follows, and we need to be clear about meanings at the outset.

Learning De�initions for learning found in the literature vary according to the theoretical background of the authors. Unless otherwise indicated, the term learning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_018) in this text means a relatively permanent change in cognition (i.e., understanding and thinking) that results from experience and that directly in�luences behavior. This de�inition, of course, re�lects our own theoretical assumptions. We will discuss this de�inition and others at length in Chapter 3 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i32#ch03) .

Knowledge, Skills, and Attitudes What is learned can be separated into different categories. Again, how these categories are de�ined differs according to the source. Historically, organizational psychologists used the acronym KSAs to stand for the terms knowledge, skills, and attitudes (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch06_001) —the different types of learning outcomes. However, the term attitudes is increasingly being substituted for the term abilities. As it turns out, the de�initions given to skills and knowledge, taken together, are not that different from the de�inition of abilities. Thus, the term abilities is redundant with knowledge and skills. Abilities, for example, are de�ined as “general capacities related to performing a set of tasks that are developed over time as a result of heredity and experience.” (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_21) Skills are de�ined as “general capacities to perform a set of tasks developed as a result of training and experience.” (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_22) The only difference seems to be whether heredity is involved. The existing scienti�ic evidence suggests that skills are in�luenced by heredity as well as by experience. Some authors make a distinction by categorizing skills as being psychomotor (behavioral) in nature, whereas abilities are categorized as cognitive. In this case, abilities do not differ from how knowledge is de�ined. The most commonly accepted de�inition of knowledge covers both the facts that people learn and the strategies that they learn for using those facts. These are cognitive in nature. Although some would argue that abilities are still distinguishable from knowledge and skills, we believe the distinction to be of minimal value. On the other hand, attitudes are relatively easy to distinguish from knowledge or skills. In addition, it is scienti�ically well established that attitudes in�luence behavior, and they are learned. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_23) Thus, to our way of thinking, attitudes must be part of any holistic attempt to describe learning/training outcomes.

In this book, the acronym KSAs refers to the learning outcomes, knowledge (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch06_001) , skills (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch06_002) , and attitudes (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch06_003) . These three outcomes of learning are depicted in Figure 1-5. The ways in which the three types of learning occur are

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interrelated but quite different. We will discuss these in depth in Chapter 3 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i32#ch03) . The de�initions for the three types of learning outcomes are as follows.

Figure 1-5 Learning Outcomes

Knowledge Knowledge is an organized body of facts, principles, procedures, and information acquired over time. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_24) Thus, learning refers to: (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_25)

the information we acquire and place into memory (declarative);

how information is organized for use, into what we already know (procedural); and

our understanding of how, when, and why information is used and is useful (strategic).

Declarative knowledge (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_023) is a person’s store of factual information about a subject. Facts are veri�iable blocks of information such as the legal requirements for hiring, safety rules, and the like. Evidence of factual learning exists when the learner can recall or recognize speci�ic blocks of information.

At a higher level is the person’s understanding about how and when to apply the facts that have been learned. This is referred to as procedural knowledge (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_024) . It assumes some degree of factual knowledge, because some information must be known about an object or activity before rules for its use can be developed. For example, one could not know when to apply the steps in an employment interviewing process (procedural knowledge) if one does not know the steps (declarative knowledge). Procedural knowledge allows trainees to understand the underlying rationale and relationships surrounding potential courses of action so they can apply their factual knowledge appropriately.

The highest level of knowledge is strategic knowledge (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_025) . This is used for planning, monitoring, and revising goal-directed activity. It requires acquisition of the two lower levels of knowledge (facts and procedures). Strategic knowledge consists of a person’s awareness of what he knows and the internal rules he has learned for accessing the relevant facts and procedures to be applied toward achieving some goal. When this type of knowledge is the focus of training or education, it is often called a “learning how to

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learn” program. For example, Bill has the task of ensuring that the hiring process for his company is both legal and effective at identifying the best candidate for the job. He would have to review and evaluate the various employment procedures to determine which, if applied correctly, would result in the selection of the best candidate and would �it within the law. He would have to have previously acquired procedural and declarative knowledge related to employment law and to effective hiring procedures. He would be using his strategic knowledge to access and evaluate the procedural and declarative knowledge to achieve his goal of a legal and effective hiring process.

Skills Knowledge is a prerequisite for learning skills. A person must know “what” to do and “when” to do it. However, a gap separates knowing those things from actually being able to “do” them. A skill is a pro�iciency at being able to do something rather than just knowing how to do it. By skills, we mean the capacities needed to perform a set of tasks. These capacities are developed as a result of training and experience. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_26) A person’s skill level is demonstrated by how well she is able to carry out speci�ic actions, such as operating a piece of equipment, communicating effectively, or implementing a business strategy.

There are two levels of skill acquisition: compilation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_026) (lower level) and automaticity (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_027) (higher level). These re�lect differences in the degree to which a skill has become routine or automatic. When a person is learning a particular skill or has only recently learned it, he is in the compilation stage. Here he needs to think about what he is doing while performing the skill. After a person has mastered the skill and used it often, she has reached the automaticity stage. Here the person is able to perform the skill without really thinking about what she is doing. In fact, thinking about it may actually slow her down. Learning how to play tennis is a good example of the different stages of skill development. When you are �irst learning to play, you must constantly think about each aspect of hitting the ball, such as where to stand on the court, and so on. Gradually, changes in how you grip the racket and your movement on the court become automatic, and thinking about them actually might reduce your effectiveness. One of the values of “practicing” as a learning technique is that through practice the behavior becomes more automatic.

Attitudes Attitudes are employee beliefs and opinions that support or inhibit behavior. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_27) In a training context, you are concerned about employees’ attitudes in relation to their learning the training material and their job performance. The beliefs and opinions the person holds about objects or events (such as management, union, empowerment, and training) create positive or negative feelings about those objects and events. Thus, changing a person’s beliefs or opinions can change the desirability of the object or event. For example, if an employee has positive feelings about a supervisor, those positive feelings are likely to become associated with the employee’s job. If the employee learns from a coworker that the supervisor said negative things about her, job satisfaction is likely to be reduced, even though nothing about the job itself actually changed. What changed is the employee’s belief about the supervisor’s opinion of her.

Attitudes are important to training because they affect motivation. Motivation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_028) is re�lected in the goals people choose to pursue and the effort they use in achieving those goals. Goals and effort are in�luenced by how a person feels about things related to the goal (i.e., attitudes). Because a person’s attitude in�luences behavior, attitudes that motivate employees to perform or learn more effectively need to be addressed through training. Do you think Domtar employees immediately embraced the new way of doing business? Were they eager to get involved in making the company more pro�itable before the training and other

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changes were implemented? It’s highly unlikely. That is why it is important to address attitudes as well as skills in a training program.

Consider the situation Lockheed Corporation faced about a decade ago. Concerned about the security of their products and product development processes, Lockheed realized that it needed either to signi�icantly increase the current security force (which was costly) or include security in the job descriptions of all employees. Lockheed chose the latter approach, implementing security awareness training and annual security refresher training. The sessions were designed to change employees’ attitudes about their jobs. Employees saw workplace security as part of their individual responsibility rather than the responsibility of only the security department. Five years after the program started, the number of reports of “suspicious incidents” increased by 700 percent. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch01biblio_28) Training in Action 1-3 illustrates the importance of examining not only knowledge and skills, but also attitudes when designing training programs.

Competencies A competency (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_029) is a set of KSAs that enables a person to be successful at a number of similar tasks. In the broadest sense, a job is broken down into a set of tasks, and the competencies required to perform the job are determined through an analysis of the tasks. A competency is more than just KSAs; it is the ability to integrate and use the KSAs to perform a task successfully. A carpenter, for example, has knowledge about different types of wood, tools and their uses, and types of �inishes that can be applied to wood. This knowledge alone will not make that person a good carpenter. The carpenter also might possess a set of skills such as cutting, shaping, joining, and �inishing. These skills alone will not make a good carpenter. The carpenter might love working with wood, place a high value on quality, and �ind great satisfaction working on the details of planning a project. These factors alone will not make a good carpenter. It is the combination of these KSAs and others such as hand–eye coordination, visual acuity, patience, and judgment that allow the carpenter to become pro�icient. To be successful at carpentry, or at any other occupation, a person must acquire multiple competencies. A trainer can identify the key KSAs that make a master performer successful at a given job and then group these KSAs into appropriate clusters. This provides a broad set of competencies

required for the job. Linking these competencies to a set of behaviors that allow trainers to “know it when they see it” provides a valuable tool for hiring, training, and determining pay rates for the job. We spend a great deal of time discussing KSAs because they are the foundation of competencies. Competencies are useful for understanding how the KSAs combine to in�luence job performance. The KSAs determine what types of training will improve competencies and, thus, lead to improved job performance.

1-3 Training in Action Training Needs in the Student Registration Of�ice The of�ices of the president and provost at a large university were receiving many complaints about the registration of�ice being unresponsive to student problems during registration for classes. The director of registration felt that, because of the high turnover in customer service representatives (CSRs) who handled student problems, most CSRs did not know the proper procedure. The director wanted to initiate training in registration procedures immediately and called in a consultant to help develop and conduct the training.

After listening to the director's description of what was wanted, the consultant said, "You're probably right. Of course, we could conduct a training needs analysis to clarify the exact nature of the performance problem." The director was concerned about the time required for a needs analysis and

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wanted to get training started right away. However, in agreeing that the needs analysis would determine speci�ic problem areas, the director said, "Okay, do the analysis, but let's get started on training right away. I want them to know exactly what they are supposed to do."

The needs analysis revealed the steps and procedures that an effective CSR was required to complete in dealing with an unhappy customer. For example, one of the �irst steps for the CSR was to identify and clarify the customer's problem and to acknowledge the feelings the customer was displaying (e.g., anger or frustration) in a friendly and empathetic manner. Once these feelings had been acknowledged, the CSR was to determine the exact nature of the customer's problem through nonevaluative questioning (i.e., determining the facts without placing blame for outcomes).

Interviews with the CSRs established that they all knew the correct procedure and most could quote it word for word. However, observation of the CSRs at work showed marked differences in how the procedure was carried out. Further analysis of each CSR's skills in performing these tasks revealed that the primary causes of unsatisfactory performance were low skill levels and inappropriate attitudes. Even though nearly everyone "knew" what to do, some were not good at doing it. Others did not believe that it was important to follow every step. One CSR said, "Hey, if they get their problem solved, what do they care if I acknowledged their feelings?"

Certainly training was required in this case, but not the "knowledge" training the registration director thought was necessary. For those CSRs who lacked the behavioral skill to carry out the procedures, demonstrations and practice sessions with immediate feedback were provided. For those CSRs who had the skill but did not understand the importance of all the procedures, training sessions were conducted in which the CSRs reevaluated their attitudes through various educational and experiential activities.

Training, Development, and Education The terms training, development, and education are used in different ways by various authors. Here, the terms training and development refer to distinct, but related, aspects of learning. Training is a set of activities, whereas development is the desired outcome of those activities. Training (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_030) is the systematic process of providing an opportunity to learn KSAs for current or future jobs; development (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_031) refers to the learning of KSAs. In other words, training provides the opportunity for learning, and development is the result of learning. “Training departments” are now called Human Resource Development departments, and “management training” is called management development. These changes in terminology re�lect the change from a focus on the process (training) to a focus on the outcome (development).

Education (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_032) is typically differentiated from training and development by the types of KSAs developed, which are more general in nature. While training is typically focused on job-speci�ic KSAs, education focuses on more general KSAs related, but not speci�ically tailored, to a person’s career or job.

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Focus on Small Business Most business texts, especially those covering human resource management (HRM), focus on medium- to large- sized businesses for a number of reasons, including the following:

Research typically requires a larger sample size.

Larger �irms have the budgets to support research.

Policies and procedures are more formalized, thus easier to track.

Techniques described in HR texts usually require a formal HR function containing multiple areas of specialization, such as compensation, HRD, selection, and so on.

When small businesses are overlooked, a major component of the economic engine that runs North America is ignored. Small- to medium-sized business �irms account for more than 60 percent of the private sector’s contribution to the economy. Most of the workforce is employed at companies employing fewer than 100 people. Almost all businesses (98 percent) employ fewer than 100 employees, and 93 percent employ fewer than 20. No size criterion is universally accepted in the literature for categorizing a business as large or small. We generally use the term small business (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_033) to refer to organizations with fewer than 100 employees, but on occasion, we use examples with about 150 employees. Larger companies that employ between 150 and 500 people are usually considered to be medium-sized.

The model of the training process that we present is applicable to both large and small businesses, but the ways in which it is implemented can differ dramatically with the size of the company. One difference is the number of employees that need to be trained. Because larger companies train greater numbers of employees, they must use a more systematic and controlled method of determining what training needs exist. In smaller companies, the owner or president can have a close working knowledge of each employee and his training needs. Another difference is in developing training programs. The smaller business can easily determine what types of training are more or less important to the company’s objectives and can design training accordingly. In larger companies, again, a more systematic and formal approach is needed because the �irm’s strategies and objectives are more complex. In larger companies, economies of scale can be obtained if common training needs across the workforce are identi�ied, thus reducing the per-person cost of training. However, a more rigorous approach to identifying needs is required because more employees are involved.

Another difference between large and small companies is that small companies can use less costly and formalized methods for evaluating training because the results are more easily observed. Throughout the following chapters, where applicable, we will have a “Focus on Small Business” section. Here, we will identify strategies and practices that might be more appropriate for the smaller business. Where research results are applicable, we highlight their implications. When research is not available, we offer logic and applied examples.

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Summary Training was described in terms of an open system in which it receives inputs from other parts of the organization and the external environment. That input is transformed by processes in effective training units into output that meets the organization’s needs. Effective training occurs as a set of phases. In each phase, input is acquired, a set of processes are engaged, and output needed for subsequent phases is produced. The training process model provides a visual understanding of how the phases relate to each other. Although the model shows the phases occurring as sequential steps (needs analysis, design, development, implementation, and evaluation), in fact these phases occur in a dynamic fashion with feedback from one phase leading to the next phase and recycling through some aspects of the previous phase.

Training faces increasing demands to demonstrate results in terms of return on investment. With these demands come increased opportunities for the training function to in�luence the direction and operations of the company. In higher-performing organizations, training activities are aligned with the organization’s strategies. The challenge for training units is to align its resources with activities that provide the best match with strategic objectives.

Changing demographics, steadily increasing market competitiveness, high demand for and short supply of knowledge workers, and customer demands for high-quality products and services all challenge companies and their training departments. Companies are becoming more concerned with creating their own talent, as signi�icant losses to the workforce will occur from retirements over the next ten years. Successful companies build their training units to serve as a continuous improvement system and problem-solving tool. Evidence is accumulating that those companies that spend more on training are achieving better �inancial results. Improved operating methods (such as ISO and increased employee competencies are also resulting in declining union membership. This trend places the leadership of unions in the dilemma of demanding increased training for their membership to ensure job security, while at the same time recognizing that higher-skilled employees allow the company to do more with fewer people.

The legal environment places requirements on the training system in terms of providing mandatory training and ensuring equitable treatment of employees. Training units also have responsibilities for making sure that training is safe for trainees and that the training is consistent with protecting the safety of those with whom trainees come into contact after training. The increased use of outside training vendors requires due diligence to prevent copyright violations.

In large organizations, the training unit is divided into specializations. The most typical entry point into a training career is in a large company as a specialist in one part of the training process (e.g., needs assessment, instructional design). From there, the progression is much like any other functional area with rotation through the different specializations before moving into a managerial position. In smaller organizations, a few people will handle all training responsibilities, while in very small businesses, all HR functions are usually divided among the few people in management-level positions.

Important concepts and terms in the �ield of training were de�ined and discussed, including competencies, learning, knowledge, skills, and attitudes. The rationale for substituting attitudes for the “abilities” concept was provided. Though differing opinions exist in the �ield of training about what constitutes training versus development and education, training in this text will be considered to be the experiences provided to people that enable them to learn job-related KSAs. Education will be considered to be the experiences that enable people to learn more general KSAs that are related to, but not speci�ically tailored to, a person’s job. Development will be considered to be the learning that occurs as a result of training or education.

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Key Terms Actual organizational performance (AOP) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term01)

ADDIE (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term02)

Analysis phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term03)

Attitudes (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term04)

Automaticity (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term05)

Competency (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term06)

Compilation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term07)

Declarative knowledge (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term08)

Design phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term09)

Development (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term10)

Development phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term11)

Education (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term12)

Evaluation phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term13)

Expected organizational performance (EOP) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term14)

Implementation phase (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term15)

Instructional Strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term16)

International Organization for Standardization (ISO) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i10#ch01term17)

Knowledge (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term18)

Knowledge, skills, and attitudes (KSAs) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term19)

Learning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term20)

Motivation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term21)

Open systems model (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term22)

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Organizational performance gap (OPD) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term23)

Outcome evaluation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term24)

Procedural knowledge (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term25)

Process evaluation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term26)

Skills (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term27)

Small business (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i13#ch01term28)

Strategic knowledge (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term29)

Training (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01term30)

Training needs analysis (TNA) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term31)

Training objectives (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term32)

Triggering event (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i9#ch01term33)

Case Questions 1. How did Domtar’s strategies align with its mission? Explain your answer.

2. Given the dif�iculty of organizational change, what factors contributed to the success at Domtar? How did Domtar’s management at all levels contribute to reducing resistance to change? What else might they have done?

3. What were the major HRD challenges associated with Domtar’s acquisitions and joint partnerships? How were these challenges addressed, and what were the risks associated with these approaches?

4. Take the critical facts in the Domtar case and place them into the appropriate phases of the training model presented in the chapter. Begin with the triggering event and provide a rationale for why each fact belongs in the phase in which you have placed it.

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Exercises 1. Review the material in Training in Action 1-3

(http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i12#ch01sidebar03) . Assume that you were hired to develop a training program for these CSRs. Write down what you believe are the four most important KSAs your training must address and your reasoning for selecting these. If done as a group exercise, allow each member of the group to share the KSAs she identi�ied and her reasoning. Then reach a group consensus as to the four most important KSAs and your rationale for including each KSA. Each group will then report to the rest of the class.

2. In small groups, discuss the training responsibilities of supervisors and managers who are not part of the HRD department. Prepare a list of what those responsibilities might be and a rationale for your choices.

3. Identify two organizations with different environments and core technologies. Describe what these differences are. Indicate how the HRD strategies of these companies might be similar or different. Provide a rationale for your conclusions based on concepts in the chapter.

4. Conduct an interview with a small business owner or manager. Get a good understanding of how the company approaches training. What differences do you see between how this company approaches training and what was described in this chapter? What are the reasons for this difference?

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Questions for Review 1. Describe the relationship between the HR and the HRD functions in a large organization. How might a

small organization handle the responsibilities of these two areas?

2. Consider the following problem-solving model. On the basis of the discussion in this chapter, describe how the training process model is or is not consistent with this model.

Problem-Solving Process

De�ine and understand the problem.

Determine the cause of the problem.

Identify potential solutions to the problem.

Select the solution that provides the most bene�its for the least cost.

Develop an action plan for putting the solution in place.

Implement the solution.

Evaluate and, if necessary, modify the solution.

3. What are the signi�icant legal issues that the training unit must take into consideration when conducting training activities? Describe how these issues might create challenges for HRD.

4. Describe ways in which training units can go about meeting the challenges they face, which were described in this chapter. Provide a rationale for your answers.

5. De�ine and provide an example that was not used in the text for each of the following:

A. Each of the three types of knowledge

B. Each of the two levels of skills

C. An attitude

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Web Research Each year a number of companies are identi�ied as the “Best Companies to Work For.” Conduct a Web search to �ind a company that has recently made the list. See if there is information about the company’s training. Conduct a second search to �ind any articles that have been written about this company’s training. Write a one-page report summarizing your �indings. Include a separate page with your references.

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Two Aligning Training with Strategy

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Learning Objectives After reading this chapter, you should be able to:

Describe the strategic planning process, its components, and their relationships.

Describe how the external environment in�luences strategic choices.

Identify the major factors in�luencing the alignment of internal strategies with external strategies.

Distinguish between an organization’s external and internal strategies, describe their relationship and the value of each.

Describe the bene�its of including a human resource development (HRD) perspective in strategy development.

Describe the differences, similarities, and relationships among human resource (HR) and HRD strategies.

Describe the process for determining the training requirements of the strategic plan.

Describe the relationship between HRD and the other HR functions.

Describe the role of HR in outsourcing of training.

Describe the �ield of organizational development (OD) and its relationship to training activities, including the value of cross training between the two.

Identify possible HRD strategic alternatives and situations in which they might be appropriate.

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2.1 Case: Hershey Aligns Training with Strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_001)

Hershey Foods is the leading North American manufacturer of chocolate-related grocery products and exports those products to over 90 countries. Hershey sells its products to distributors (such as large grocery and drug store chains, small retailers, wholesalers, and brokers) who then sell these products to their customers. Hershey’s success depends on those retailers doing a good job of promoting Hershey products in their stores. As a part of its marketing strategy, Hershey has a variety of promotional programs for its distributors that are used to stimulate sales at various times during the year. One part of this strategy was a practice known as “trade funding,” which has the manufacturer reinvest some of its pro�its back into joint promotional programs with its distributors. For example, Hershey might provide �inancial support to a grocery chain to create displays promoting Mother’s Day specials or to promote “three for the price of two” specials. Hershey’s trade funding was often done on a promotion-by-promotion basis with each customer. Both Hershey and its customers sometimes felt that these types of promotional strategies were not effective enough. Furthermore Hershey’s executives felt that a better approach to allocating these funds would maximize mutual bene�its. In addition, there wasn’t an effective-enough connection between a customer’s sales of Hershey products and how much funding they received. Negotiations over these promotional investments would also include agreements on other aspects of the customer’s relationship with Hershey, such as pricing, shelf space/location, placement of product, creation and use of promotional displays in stores, and joint promotion plans (for example, coop advertising), and these needed to be more effectively negotiated into the overall strategy for executing sales with each customer.

At the beginning of 2002, believing that its current approach to allocating trade funding was not the most effective method for maximizing return on investment (ROI) and customer satisfaction, Hershey’s senior executives decided that signi�icant changes were needed in its strategy. This was at a time when Hershey’s �irst- quarter �inancial numbers were down; they were in the middle of management reorganization; the union workers in the largest factory were on strike; and the sale of the company was being quietly explored.

Using information from a customer satisfaction survey along with their belief that a better trade funding method was possible, senior management came up with a new strategy with the following key elements:

Hershey and each customer would develop an annual promotional plan for which Hershey would allocate funds.

The annual plan would include a negotiated agreement on issues such as commitment to sales targets, pricing, shelf space, and other marketing issues outside of “special” promotional events.

The amount of funding customers would receive would be based on their past sales record and ability to execute the agreed-upon annual plan.

The new strategy was called “Blue Chip.” Successful implementation of the new strategy would require salespeople to change the way they interacted with customers. Some new task requirements would be

gaining access to key managers (sometimes different from their day to day buyers) and explaining to them the new trade funding approach;

getting the customer to share sales data and information about future plans that would be needed to help convince them of the advantages of the new Blue Chip approach;

negotiating a new and different pay for performance approach to receiving trade funding;

motivating customers to engage in a new annual (rather than “promotion by promotion”) planning process;

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gaining compliance to annual promotion plans after they’ve been negotiated; and

negotiating during the annual promotion period when mutual goals were not achieved, or when changes to the annual plans were needed

To accomplish these tasks the salespeople would require new KSAs. Some of these included

knowledge of the new program,

knowledge of all the factors that would be discussed in future agreements with retailers, and

negotiation skills to deal with the more complex agreements they would be required to execute with retailers.

The knowledge required would be provided through meetings, management communications, and manuals; however, to effectively implement the strategy, the salespeople would need to be adept at negotiating these new long-term deals. For the negotiation skills necessary to implement the strategy, Hershey went to an outside vendor, BayGroup International. BayGroup International developed an experiential negotiations workshop designed to give the salespeople the skills necessary to make Blue Chip a success, and give their managers the skills needed to coach their teams for optimal performance back on the job after formal training ended.

The Blue Chip strategy was introduced and the related training all took place at the May 2002 Sales Summit. The training focus was to provide the entire sales force with the KSAs needed to implement the strategy. Implementation of a strategy such as this is complex and dif�icult. Most companies would put the implementation (in this case the training) of a new strategy on hold until they had a clearer picture of how everything would “shake out,” given the labor strife and possible sale of the company noted earlier. What made Hershey decide differently? Hershey needed to put both its employees and customers on notice that they were changing how they did business. As Bernie Banas, VP of sales at the time, said, “We were going through a transition. . . . It is critical to both Hershey and our customers that we execute the transition �lawlessly.” By combining the introduction of the strategy and the training required to implement it, Hershey showed that it was serious about the strategy. This wasn’t just training focused on skill gaps; it was training that connected directly to Hershey’s business goals and strategy.

So what did the training focus on? First, pre-training executive communication (reinforced at the start of each workshop) put the need for strategy change into a context that all the sales force could understand, and then provided an overview of how the Blue Chip strategy would address their needs. This was followed by BayGroup International’s negotiation training that was to provide salespeople with the skills and con�idence to successfully implement the new strategy. This training used exercises based on typical challenging negotiation situations the sales team would encounter when they went into the �ield to deploy it.

Discussions of Hershey’s strategic business needs included the following:

The need for a change in strategy to improve results for both Hershey and its customers

The need for a shift in the selling process from a relationship-based one to a more data-driven one

The need for a new pay-for-performance–based approach for working with customers

The need to handle increased sophistication of customer buyers in terms of purchasing and negotiating knowledge and skill

The need to include all sources of value and negotiating leverage in discussions with customers

The Blue Chip strategy was then described in terms of (1) its bene�its to customers, (2) its ability to motivate customers to plan better and to incorporate all aspects of product promotion within the plan, and (3) Hershey’s ability to gain compliance to the annual plans. The training was kicked off by the senior executives, who directly

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connected the training objectives to the business needs. These training objectives were based on what was going to be needed in terms of KSAs to effectively implement this new strategy. In other words, a future- oriented performance gap (need for effective negotiation skills) was evident based on the current salespeople’s KSAs. They would need to be adept at negotiating in order to implement the new strategic plan effectively. This made the negotiating training highly relevant and central to the success of the strategic change. The content of this training was based on the technical aspects of the Blue Chip program and its deployment through effective negotiation skills, tools, and sales management processes. The negotiation skills helped the sales force effectively balance Hershey’s interests with the maintenance of a collaborative relationship with the customer. All the training was focused on the practical application of the new KSAs. Experiential and discovery learning techniques were used to deliver this training, which was particularly important to help the seasoned Hershey’s sales team see the weaknesses of their current negotiation approaches (built up over many years) and highlight the need for personal skill development.

The new strategy proved very successful for Hershey, as its �inancial numbers have improved and so have its surveys of customer satisfaction. Share price has improved as well. In May of 2002, Hershey was trading at $34 a share. In May of 2010, it was trading at $47. The new strategy would not have been successful had the sales force not implemented it correctly. The training provided at the summit, as well as the follow-up training and coaching of the sales teams was crucial to the strategies’ successful implementation. But just as critical were the changes to the internal reinforcement systems at Hershey that supported the changes required of the sales force. Hershey continued to build on its successes by implemented follow-up training in subsequent years, as well as consulting from BayGroup International experts for speci�ic sales teams to help them execute their strategic account strategies.

As a side note, Hershey has an interesting training philosophy. They believe that visible short-term victories lead to credibility and future funding for long-term training and development projects. One rule of thumb is that every year’s training budget should include at least one key strategic initiative that is “close to return on investment (ROI).” Clearly the Blue Chip initiative met this criterion.

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2.2 Overview As indicated in Chapter 1, aligning training activities with the goals and strategy of the organization has been the top priority of HR and HRD leaders for many years. The Hershey Foods case exempli�ies this process. Note how it was done. First, the speci�ic strategic plan is analyzed and it is determined whether any new job requirements are needed. In this case some new tasks related to being able to convince customers of the value of the new Blue Chip strategy were identi�ied. Once the tasks are identi�ied, the KSAs necessary to complete these tasks are identi�ied. Then training needs to be developed, or purchased, to provide these KSAs. In the Hershey case, the training was purchased from a well-known and well-regarded consulting �irm.

Hershey realized that when you tie your training to speci�ic strategic initiatives, it ensures that training dollars are put to the best use. This chapter provides a general explanation of business strategy and ways to make sure that training is aligned with that strategy. To better understand how to align training with strategy, it is �irst necessary to understand the strategic planning process.

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2.3 Strategic Planning Formalized strategic planning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_001) is a process used to determine how best to pursue the organization’s mission while meeting the demands of the environment in the near (e.g., next year or two) and long term (e.g., next �ive to ten years). A proactive strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_002) focuses on the longer term, and its process is more formalized, typically involving sophisticated analytical and decision-making tools. This is the process Hershey used. Its purpose is to build a good �it between the organization and its future environment. However, strategy can also develop in a more reactive fashion, responding to short-term business conditions. In a reactive strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_003) less formal analysis and planning occur and more attention is focused on the immediate future. Many suggest that both reactive and proactive strategies are necessary for an organization to be effective. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_002) The proactive process uses a best guess about what the future will bring, whereas the reactive process addresses how operations will confront what exists now and in the next year or two. A strategic plan that positions the �irm for long-term expectations but is modi�ied by the �irm’s experience as it moves forward is preferable to either having a rigidly held long-term plan or reacting only to short-term experience.

To be effective, strategic planning should occur throughout the organization, with each higher level of the organization providing direction to the lower levels. Once a strategic plan has been developed, organizational units develop or are given objectives by higher-level units that, when combined, will implement the strategy. The units develop their own strategies and tactics to achieve the organizational strategies. Individuals within the unit are given or develop objectives that will help achieve the unit’s objectives. Thus, from the HR unit’s perspective, the organizational strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_004) provides the direction for HR’s strategic objectives. HR develops supporting tactics that provide the HR staff with a set of objectives to achieve (see Figure 2-1). In this way, plans for implementing the organization’s strategy are developed and coordinated throughout the organization.

Figure 2-1 Linkage Between Strategy, Tactics and Objectives

So imagine you are the vice president of HR at Domtar (the case from Chapter 1). You have your objectives from the strategic plan. What is the next step? Well you need to meet with the various HR units and provide them with objectives that will help the overall strategic plan come to fruition. The unit responsible for compensation will need to consider implementation of an incentive compensation system tied to the new strategic focus. To implement an effective incentive system requires an effective performance review and

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feedback process. But recall that such a system would also be required to attain one of the goals of the strategic plan; improving employee performance. Can you think of anything else? What about the organizational development unit? Implementation of Kaizen would be high on their list of objectives. What are the chances that all these HR projects would be approved and funded? Since they were all tied to the implementation of the strategic plan, all were funded.

Given all you now know, what will be required from the training department? A new incentive system will require some level of training for managers expected to implement such a program. Furthermore, suppose that the new performance appraisal system was focused on objective setting (i.e., Management by Objectives—MBO). This would require training in how to develop objectives with subordinates as well as effective feedback skills for the management meetings with subordinates. The new strategic focus espoused by Raymond Royer would require getting all managers on board with a solid understanding of this new focus through some level of training. Also the employee orientation program would have to be modi�ied to re�lect this new focus.

These are some of the ways in which organizational training is a key to implementing the strategic plan. What about the formation of Domtar’s strategic plan? Should the HRD unit have had any input on the front end? As you might have noted, the success of the strategy depended heavily on the competencies of the workforce. Without knowing the current capabilities of these individuals, Domtar does not know whether it has the capacity to successfully implement the strategy. The same can be said of Hershey’s strategic plan. Without Hershey having a workforce with the right competencies, the strategic plan would not get off the ground. HRD can and should be involved with strategic planning at the following three levels: organizational strategy, HR strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_005) (tactics), and HRD strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_006) (more tactics). We will review the factors that go into developing a strategic plan before covering these areas. Our goal here is to provide you with the basics needed to understand strategy development, so we will not cover the area in depth. For the sake of brevity and general understanding, we have simpli�ied many of the concepts and principles.

Organizational Mission Strategies are created to achieve the organization’s mission. A mission statement articulates why the organization exists. The mission is the focal point for strategy development because it outlines what the strategy is designed to achieve. Here are examples of relatively short and clear mission statements from two different types of organizations.

Mission of Ozone House (a Social Service Agency) Ozone House is a community-based, not-for-pro�it agency that seeks to help youth lead safe, healthy, and productive lives through intensive prevention and intervention strategies. Since 1969, Ozone House has actively developed unique, high-quality housing and support programs and services that provide support, intervention, training, and assistance to runaway, homeless, and high-risk youth and their families. Through these support services, we help youth develop essential life skills, improve their relationships, and enhance their self-image so that they may realize their full potential for growth and happiness. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_003)

Mission of Herman Miller Herman Miller, Inc., is a leading global provider of of�ice furniture and services that create great places to live, learn, work, and heal. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_004)

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These statements, though different, show many similarities. A good mission statement is a fairly general description of what the organization seeks to accomplish. It describes the products or services the organization provides, to whom it provides them, and what it wishes to accomplish.

Strategic Choices Strategies re�lect choices that the organization makes about how to pursue its mission. An organization must choose from among several often contradictory strategies. The strategic choices a company makes have signi�icant implications for where HRD should focus its resources. To effectively align the unit’s activities with the strategies, a manager will need to understand the factors that have led the organization to its strategic choices. The literature dealing with strategy contains a great many categorizations and terms that refer to different types and levels of strategy. For simplicity, we choose the term competitive strategy. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_007) Competitive strategy focuses on positioning the company’s products or services in the marketplace. This important strategy encompasses the internal and external choices the company makes to improve or retain its competitive position.

Two types of competitive strategy are market leader (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_008) and cost leader (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_009) . Firms that choose the market leader strategy are also referred to as prospectors (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_005) and innovators. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_006) Their strategy is to �ind and exploit new product and market opportunities. Success depends on their capacity to survey a wide range of environmental conditions, trends, and events and to move quickly into windows of opportunity. Market leaders typically use multiple technologies capable of being used in many different ways.

Companies that adopt the cost leader (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_007) strategy, also referred to as the defender strategy, (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_008) represent the opposite end of the continuum. This strategy’s main goal is to be the low-cost provider in the industry. Success depends on pricing competitiveness and having a product that is acceptable to (but not necessarily the best in) the market. Success is achieved by producing a standardized product or service ef�iciently, using economies of scale low-cost labor, and introducing innovative production methods.

Most organizations with multiple products or services will have different strategies for each product or service. Additionally, there are many ways to pursue a single strategy. For example, one way to pursue a cost leader strategy is to aggressively pursue competing bids from as many suppliers as possible, then accept the lowest bids from as many suppliers as are needed to meet requirements. A different tactic is to develop long- term relationships with a few suppliers with capacity to meet your requirements, guaranteeing sole supplier status in return for meeting a speci�ied price target. For the HRD unit looking for outside training, this might mean choosing between having a large number of external training contractors or a single contractor who guarantees a low price. Both tactics can reduce the cost of needed goods and services, but they result in different effects on the purchasing activities of the organization and on supplier relationships. Among the feasible alternatives, the company seeks to choose the one that will best achieve the mission. Which will be “best” depends on how the organization addresses the strategic contingencies described in the following sections.

External Environment An organization’s external environment consists of elements outside the organization that in�luence the organization’s ability to achieve its mission, such as competitors, the economy, societal norms and values, laws

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and regulations, raw materials, suppliers, and technological innovation. Each organization must determine the threats and opportunities that exist in its environment and address those that are critical in the strategy. What kinds of environmental factors might be important in the Hershey Foods case? In addition to identifying the critical threats and opportunities, the organization must assess how stable these will be in the future.

Environmental uncertainty (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_010) is determined by two factors: complexity and stability. Environmental complexity (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_011) refers to the number of factors in the environment and the degree to which they are interrelated. Environmental stability (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_012) is the rate at which key factors in the environment change—the more rapid the change, the more unstable the environment. When the environment is more complex and unstable, it is more uncertain. When it is simpler and more stable, it is more certain. Figure 2-2 depicts this relationship.

Figure 2-2 Factors In�luencing Environmental Uncertainty

In more uncertain environments, the organization must be �lexible and adaptable if it is to respond effectively. A market leader strategy is consistent with this situation. More certain environments reward “getting it right and sticking to it.” A more standardized operating system can minimize costs and maximize pro�itability, a situation consistent with the cost leader strategy. Uncertain environments generally favor strategies using more decentralized decision making, whereas external environments that are certain usually �ind centralized decision making more effective. Given two similar organizations, the one choosing the market leader strategy will, by de�inition, compete in a more uncertain environment. The cost leader competes best in established and more stable markets. This environment may be more hostile, but it will experience a slower rate of change. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_009)

Internal Alignment with Strategy Once a company has chosen a competitive (external) strategy, it needs to align its internal environment with that strategy. It needs an internal strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_013) (such as becoming more �lexible) that provides direction for internal systems. For example, in the Hershey Foods case, Blue Chip was the external strategy. Internally, this meant that salespeople would be required to negotiate effectively with their customers and that trade funding allocations would be based on new criteria. Thus, some of the internal changes required were the development of negotiating skills for the sales force (training needs), a reward system that acted to reinforce the appropriate behavior of the sales force, and the decision-making

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system for allocating the trade funding dollars (nontraining needs). Two key factors in the internal strategy are the organization’s core technology (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_014) (how the principal products or services are created) and its structure (e.g., division of labor, policies, and procedures). Since the Hershey case didn’t require changes in the product, but rather in the behavior of employees, it was only the structure that needed to be changed to align with the new strategy. Figure 2-3 represents the relationships among environment, strategy, structure, and technology. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_010) As the �igure indicates, strategy is the process of making internal adjustments to accommodate the demands of the external environment while remaining true to the mission. Note, however, that the arrow between strategy and environment shows in�luence in both directions, re�lecting the fact that the choice of competitive strategy may change the environment in which the �irm operates.

Figure 2-3 Relationships among Mission, Strategy, Technology and Structure

Technology Technology is how the work is done in the organization. Each unit in the organization uses technology to accomplish its tasks. Core technology refers to the main activities associated with producing the organization’s principal products and services. Technology can be categorized in a number of ways. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_011) Taking some liberties with these approaches, we use a simple continuum of “routine” to “nonroutine” technologies. At one end, the routine technology (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_015) label is applied to tasks with outcomes that are highly predictable, demonstrate few problems, and use well-structured and well-de�ined solutions when problems do occur. High-volume assembly lines, such as in a garment factory or some automobile plants, are examples of routine technology. Such operations consist of highly specialized tasks and well-de�ined rules for coordinating activities. Decisions are usually top–down and highly formalized, leaving little discretion to the line employee. Routine technology is most often seen in the cost leader strategy. Even though the initial infrastructure required to put this technology in place can be expensive, its ef�iciency in high- volume production provides low production cost per unit.

A task using nonroutine technology (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_016) is characterized by results that are dif�icult to predict, because problems occur unexpectedly, and solutions to these problems are not readily available and need to be developed on a case-by-case basis. With this type of technology, management needs to provide lower-level managers and line employees with more decision-making authority to meet the challenges encountered. This responsibility, of course, means that the �irm needs employees with a

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higher level of KSAs. This technology also requires greater task interdependence, which increases the need for coordination and integration. Managers and workers need decision-making authority within their own areas, but their activities must also be coordinated with the activities of others. Thus, employees must be given clear goals and parameters for their work outcomes but also be allowed to determine the best way to meet them. This type of technology is more typical of market leader strategies in which the development and production of new products is key. The cost of the nonroutine technology might be high, but new products can command high prices in the marketplace.

Structural Choices The internal strategy should also address the ability of the organization’s structure to carry out the competitive strategy. Organizational structure (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_017) refers to how a �irm is organized (how labor is divided) in addition to the rules, policies, and procedures used for making decisions and coordinating its various activities. The organization’s structure de�ines how the internal operations interact with the external environment. To be most effective, the organization’s structure should funnel environmental input to those units best able to take advantage of opportunities and avoid threats. At the same time, it must facilitate the core technology. Although there are many structural components, we will examine only these three: organizational design, decision autonomy, and division of labor.

Organizational Design The number and formality of rules, policies, and procedures created to direct employee behavior is the essence of organizational design (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_018) . An organization’s design can lie somewhere on a continuum ranging from mechanistic to organic. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_012) A highly mechanistic design (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_019) re�lects an organization with highly de�ined tasks, rigid and detailed procedures, high reliance on authority, and vertical communication channels. A highly organic design re�lects an organization that has �lexibility in its rules and procedures, loosely de�ined tasks, high reliance on expertise, and horizontal communication channels. Few organizations operate on the extremes of this continuum; most lean more toward one end or the other.

The organic design (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_020) places more emphasis on KSAs, whereas the mechanistic focuses more on technical and �inancial systems and resources. In the mechanistic design, employees’ technical and interpersonal skills and behaviors are prescribed. In the organic design, these skills and behaviors are permitted to evolve (within broad parameters) to supplement and complement the unit’s technology. As you might suspect, the organic design is most appropriate for nonroutine technologies, whereas the mechanistic design is more appropriate for routine technologies. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_013)

Decision Autonomy Decision autonomy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_021) is the amount of authority given to employees in deciding how to complete a task, and the degree to which they are able to in�luence goals and strategies for their work unit. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_014) Individual or small-group decision autonomy is a function of whether decisions are centralized or decentralized. Cost ef�iciencies are associated with more centralization, whereas �lexibility/adaptability is associated with decentralization.

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(http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_015) Thus, centralized structures are more appropriate for cost leader strategies and decentralized structures for market leaders.

Division of Labor The way in which the work of the organization is divided among the units and organized is called division of labor (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_022) . One way in which labor is divided is between line (those working directly with the core technology) and staff (everyone else); another is between management and labor. Some organizations divide their tasks by products, some by customers, and others by geography. Some divide work into functional areas, while others organize work around the processes in their core technology. Even though each of these divisions is important, our focus is on the degree to which duties and responsibilities within the organization are specialized. We place organizations on a continuum from narrowly de�ined (specialized) to generally de�ined (nonspecialized) duties and responsibilities. The more specialized the duties and responsibilities, the more centralized the decision making and the more mechanistic the organization. This results from the need to closely oversee and coordinate the activities of employees whose scope of responsibility is fairly narrow. In organizations with duties and responsibilities that are nonspecialized, a more organic and decentralized structure is appropriate. This allows employees to coordinate their activities less formally and provides more �lexibility and adaptability for the organization. Again, you can see the close relationship between an organization’s core technology and division of labor.

Aligning HR and HRD with Strategy The HR function must support and enhance the organization’s corporate strategy. This is accomplished by making sure that the various components in the HR system—such as staf�ing, HR planning, performance appraisal, compensation, health and safety, employee and union relations, and, of course, training—are aligned with the strategic plan. Each of these systems has a direct impact on the organization’s effectiveness. Integrated under the HR umbrella, each can enhance the organization’s ability to mobilize and motivate the employees to carry out the competitive strategy.

Why should companies invest in developing a strategic HR management capability? Two reasons. First, as Kristi Yowell, the former Training and Development Manager of Towson University says, “I always ensured at least 75 percent of all training had a strategic connection. Why? To ensure funding.” Second, evidence indicates that �irms that do so will signi�icantly increase their market value. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_016) Data collected from more than 2,400 �irms show that when HR systems achieve operational excellence and are aligned with the �irm’s strategic goals, the market value of the �irm increases by about 20 percent. So investing in HR excellence and bringing HR systems into alignment with business strategies provides a clear competitive advantage.

HR should contribute to the development of the organization’s competitive strategy and of course support those strategies once they are adopted. Decisions about competitive strategy need to be re�lected in HR strategy, and vice versa. For example, if the company’s operations are labor intensive and a strong union consistently demands high wages and restrictive work rules, it would be foolish to adopt a cost leader strategy without addressing these issues. Similarly, once the company makes the decision to adopt a cost leader strategy, HR must develop its own strategies for supporting cost leadership. Assume that a cost leader strategy requires a change in production technology that adds more automated equipment. This change would eliminate many labor-intensive jobs and add some technical jobs, thus providing a net labor saving. Such a change could be successful only if HR can �ill the new technical positions with quali�ied people. Other HR factors would also need to be considered, such as the effect on labor relations and the �inancial costs associated with eliminating the old and staf�ing the new jobs. The HR department’s input into the strategy formulation process would be to assess

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the HR issues critical to the strategic alternatives. Failure to address the HR side of the strategy could lead to the purchase and installation of a new technology that, among other things, is too costly to staff, creates labor con�lict, produces con�licts in the existing culture, or requires lengthy training, thus delaying the implementation of the technology. What were the critical HR issues at Hershey Foods and Domtar?

We are not suggesting that HR issues should be the only, or the most important, in�luence on the strategic direction taken by an organization; however, they should be part of the equation. The relative importance of strategic variables such as technology, �inancial assets, product mix, and HR varies from one context to the next. Likewise, the importance of HRD issues to competitive strategy depends on how central employee competencies are related to successful implementation. Figure 2-4 shows how HR and HRD are related to the organization’s business strategy.

Figure 2-4 Strategy Development at Different Levels

Training in Action 2-1 describes the experience of Hewlett-Packard Canada in strategy reformulation. As illustrated in this example, the external strategy must be supported by internal strategies that bring the structure and core technology into proper alignment. HR and HRD are typically key players in the development of these internal strategies.

HRD is a part of the HR unit and contributes to the development of new strategy by providing an assessment of employee strengths and weaknesses relating to the competitive strategy being developed. Unfortunately, many organizations do not think of HRD in this strategic sense. Business strategies are often formulated with little consideration of employee capabilities, and it is only after implementation problems surface that HRD considerations arise. These problems often result in costly delays in implementing the strategy, and in some cases, even doom the strategy to failure. If the competitive strategy requires increasing the competencies of employees, the various methods of approaching this task would need to be examined. As a part of this, HRD would make an estimate of the time and resources required for employees to be ready to implement the strategy. This allows the strategic planning group to determine the feasibility and cost/bene�it of the strategy.

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2-1 Training in Action Back from the Brink (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_017)

In the early 1980s, Hewlett-Packard (HP) Canada was considered to be a slow-moving, inef�icient company compared with its new competitors in the computer equipment business. Although it had state- of-the-art printers and other computer-related equipment, it was slow to get these products to the market, and its prices were comparatively high. Business results were poor and projected to worsen. Furthermore, a recession was in full swing. How did it manage to turn that around to become a market leader? A rethinking of the competitive strategy was necessary. Top management performed the normal strategic planning activities, but it also formed teams to target companies in need of computer equipment and to determine what HP Canada needed to do to win their business. After analyzing their environment and internal strengths and weaknesses, the HP strategic planning team adopted a strategy combining elements of both quality and cost leadership.

To address the internal weaknesses related to this strategy, HP Canada cut staff and streamlined operations. The sales force, for example, had been organized into separate groups specializing in one or a few products. Under the new structure, the groups were merged into a sales force organized around customers but familiar with all products. HP Canada also relied on developing economies of scale in the production of its printers and pricing them competitively rather than taking large pro�it margins on their popular models. This strategy of getting a smaller unit pro�it from a larger volume of units, combined with improvements in product quality, vaulted HP Canada back into a market leadership position. Pro�its increased in spite of a continued Canadian recession. By the late 1980s, HP Canada positioned itself to be one of the toughest competitors in a competitive industry.

You might think that hiring from outside the organization to improve the competency base of the organization wouldn’t involve HRD much. In this approach, competencies are imported through recruitment and hiring. Even here, however, HRD needs to be involved in orientation and any other new employee training. If current employees are to be terminated or reassigned, HRD is likely to be involved in outplacement or training for the new job.

In the Domtar case, it became clear that no one had the knowledge and skills to implement a Kaizen approach to quality management. Domtar brought in an expert from outside to oversee the implementation process, but he would not be able to train the workforce by himself. The company wanted to improve customer service skills throughout the organization. It also needed to instill the Domtar values in the new employees it had inherited from mergers and acquisitions. Clearly, HRD needed to be a part of these strategic discussions.

Of course, the HRD unit’s primary responsibility is to align itself with and support the organization’s strategies. It does this by developing training that focuses on critical competencies that are needed to meet strategic performance objectives and delivering that training to the right people. HRD can better align itself with the organization’s strategy by maintaining close connections to the product development area. Every business, whether it delivers goods or services, develops and delivers a product. New products are often a part of new strategy and require training for one or more of the following: the sales force, customers, and production employees. The earlier the training unit is able to understand the training needs relating to the new product, the better able it will be to meet those needs.

The HRD unit also plays a key role in identifying and assisting in the removal of barriers to desired performance. This last role is addressed in more depth in the next section.

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2.4 OD, Strategy, and Training The very best outcome that training, by itself, can achieve is the increase in trainee capabilities, that is, the trainee’s ability to perform. The value of this comes from the transformation of this capability into improved job performance. Getting improved performance from improved capability is a performance management challenge. The HRD unit is focused on achieving the “capability,” and organizational development (OD) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_023) is focused on the management of performance. Thus, the two should go hand in hand. The planning and implementation of strategy involves change—both in the way the organization interacts with its external environment and in how it manages its internal operations. OD deals with creating and implementing planned change. Thus, strategic planning and OD should go hand in hand. Unfortunately, in many organizations, these three sides of the organizational effectiveness triangle are not always aligned. In the sections that follow, we discuss what OD is and how it relates to strategic planning and training.

OD provides a research base and set of techniques related to organizational effectiveness and managing change. As the organization’s objectives and strategies change, the KSAs required of employees also change. However, it is not enough simply to provide new KSAs. The organization’s systems and procedures must change to support the use of the new KSAs if the desired change in performance is to occur. In the Hershey Foods case, what types of systems and procedures needed to change to make the new strategy successful? The reward system? The way Hershey is organized? The HRD process? The �ield of OD provides processes for identifying when systems and procedures need to change and how to manage the change. So let’s examine the strategic planning process and the ways that HRD and OD can support each other in the implementation of a strategic plan.

OD and Strategy Whether an organization’s strategies are developed proactively or reactively, they require support from the internal systems. Organizational change is an inherent part of the process of developing and implementing strategy. Organizations must resolve the following three core issues in developing and implementing strategy: (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_018)

1. Technical design issues. These issues arise in relation to how the product or service will be determined, created, and delivered.

2. Cultural/ideological issues. These issues relate to the shared beliefs and values that employees need to hold for the strategy to be implemented effectively.

3. Political issues. These issues occur as a result of shifting power and resources within the organization as the strategy is pursued.

These three issues are critical to the organization’s ability to achieve its objectives. In developing strategy, decisions such as what products to develop, how to manufacture them, and what marketing techniques to use will signal shifts in organizational values, power, and resources. These issues will need to be managed effectively to create support for, rather than resistance to, the strategic plan. The �ield of OD can help organizations manage change effectively. OD techniques provide methods for change to occur in an objective, goal-directed manner that addresses the needs of both the organization and the employees affected by the change. OD uses an open-system, planned-change process that is rooted in the behavioral sciences and aimed at enhancing organizational and employee effectiveness. A model of a generic planned-change process is provided in Table 2- 1.

Table 2-1 Steps in a Generic Planned Change Model

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1. Establish a compelling need for change.

2. Develop, in collaboration with the concerned parties, the goals to be achieved.

3. Determine what is causing the need for change.

4. Identify and evaluate alternative approaches for addressing the need for change.

5. Select an approach for addressing the need for change.

6. Implement the approach.

7. Evaluate the results.

8. Feedback the results to the organization.

A. If results are favorable, go to step 9.

B. If results are unfavorable, go back to step 4.

9. Internalize the change. The changes made become routine and the normal way the organization conducts its business.

The strategic planning process, if done properly, is an OD approach to change. The �irst step, establishing a compelling need for change, occurs in strategic planning during the environmental scanning phase. The need for change is made apparent when the strategic planners identify the threats and opportunities in the external environment and compare that information with what the organization is currently doing. A need for change is established when a gap exists between what the organization is doing and what the external environment requires (or will require). Next, the company’s business objectives are set (step 2 in the change model). The company’s current strengths and weaknesses are analyzed to determine what internal changes are necessary (step 3). This information provides the compelling need for internal change, and internal strategic objectives are developed for these areas. The rest of the steps in the OD model concern the development of tactical activities to achieve the strategic objectives.

Levels of Change and Resistance Whenever internal change is planned, the plan should address the following three levels in the organization:

1. The organization itself: The way the organization is put together (i.e., what we call structure and design) must be examined to ensure that work is allocated appropriately and organizational systems are supportive of the change. This level of analysis identi�ies how labor is to be divided and what rules and procedures will govern operations.

2. Groups and their interrelationships: The way work is performed in the organizational units (i.e., the sociotechnical systems) and how the outputs of the various units are integrated are the focus of this level of analysis. The issues here concern the design of jobs within units of the organization and the interrelationships of the jobs to one another.

3. Individuals within groups: The changes in performance that will be required of employees must be identi�ied and mechanisms—facilities, machines, equipment, and KSAs—put into place to enable the desired performance to occur.

Resistance to change is a common occurrence. Without suf�icient motivation to change, resistance is natural. Change requires effort, new learning, and possible shifts of resources and outcomes. Often, those satis�ied with the status quo can create enough resistance to derail the change effort, even to the point that the business fails.

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A major factor in this resistance is the failure of the change process to address all three levels of change. For example, instituting a work-team system in the organization without addressing the performance appraisal system will naturally cause resistance to the new approach. People may ask, “Why should we work as a team if we’re getting evaluated as individuals?” Training in Action 2-2 provides a good example of what can happen if all three levels are not addressed in the change strategy.

Achieving successful change at one level can require analysis and possibly interventions at the other levels. Consider the effect of a change in the organizational structure. Work would be allocated differently so that some units might get work they have not done before while others might have certain jobs taken away. The affected units would need to change their work processes because they would have different amounts or types of work to do. These changes would require OD interventions at the group level. Here, the OD practitioner is involved in the design or redesign of jobs and work systems and the associated interpersonal relationships. In addition, changes in how these work groups interact with others would be required because they would now be producing something different. Employee resistance to new procedures would need to be addressed as jobs are being redesigned. At the individual level, employees would also need to acquire the knowledge and skills necessary to perform their redesigned jobs.

You might think that these three levels of change are intertwined only if the change occurs at the organizational level. However, they are integrated no matter where the initial change takes place. This is why it is important to take a systems perspective. Suppose you want employees to increase their skill at integrating quality control (QC) into their production work. Of course, training at the individual level is required. But is it the only thing necessary for the change to be successful? Even if employees’ KSAs are developed, the job itself and the organizational systems must support using the KSAs. The company will need to ensure that the design of the job supports the performance desired from its employees. For example, the equipment and tools might need to be changed. Also, if employees feel that QC is just a way for management to eliminate their jobs, they might resist this intervention, and providing new KSAs will not be enough. Work group norms (i.e., attitudes) will need to be changed to be consistent with QC objectives. At the organizational level, reward and appraisal systems would need to support the desired performance outcomes and work procedures. If the focus of the appraisal system does not assess the quality of the employees’ work but only the quantity produced, employees will not be likely to sacri�ice quantity for quality. The appraisal system needs to re�lect the importance of quality as well as quantity. The point is that the components of the organization (structure and design, jobs and employees) are interdependent, and changes in one need to be addressed as part of the overall change effort. The training needs analysis process (Chapter 4 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i48#ch04) ) provides a model for determining not only what training is needed, but also what other changes are necessary to manage performance so that increased capabilities get transformed into increased job performance.

2-2 Training in Action Self-Managed Work Groups at an Automotive Parts Plant A southeast Michigan automotive parts manufacturing plant was divided into three manufacturing areas (Areas A, B, and C). The Area B manager, after some initial research, decided to install self-managed work groups (SMWGs). An outside consultant was brought in by the manager to assist in the change. The following activities were carried out in the order presented:

1. A steering committee was formed consisting of the plant bargaining committee chairperson, and two other United Auto Workers (UAW) representatives, the area manager, the plant industrial relations manager, two area superintendents, and the consultant. This group developed and managed the change process.

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2. An analysis of Area B employees, supervisors, and production systems was conducted to identify areas for piloting the SMWG concept. Three production processes were selected on the basis of employee and supervisor interest and on the ability of the production process to create natural groupings of employees. While the equipment in these areas would remain the same, some of the tasks, and how work was assigned to individuals, would change as a result of the team concept.

3. Training was provided as described here, with duration indicated in parentheses.

A. All Area B employees received a general orientation to SMWGs. This orientation included an overview of the changes that would occur in the pilot groups, the process of determining how those changes would occur, the role of staff support functions (e.g., engineering, accounting, etc.), and a question-and-answer period. (2 hours)

B. Supervisors and line employees in the SMWGs were provided with the following:

A more in-depth orientation, including the goals, roles, and expectations for the SMWGs and the salaried coordinator (formerly supervisor).

In addition, each SMWG developed a team mission and set team goals. (4 hours)

Basic team skills: interpersonal communication, interpersonal relations, con�lict management, and problem solving. (16 hours)

Team-building training for each group consisting of both instruction and trainer- facilitated application. After each component of training (e.g., development and assignment of roles), the team would apply the concepts and principles to their team. For example, after presentation of the team procedures material, the team developed an “operating plan,” describing how work would be assigned, how team meetings would be conducted, how coordination between shifts would occur, and so on. (20 hours)

Training in information management, group facilitation, meeting management, and stress management to prepare supervisors for their new roles as salaried coordinators. Time was also provided for them to identify problems in carrying out their new roles and to develop potential solutions. (8 hours)

C. Consultation for SMWGs and salaried coordinators was ongoing for a year after completion of the training.

This applied example demonstrates elements of effective change management at the group and individual levels. However, problems were encountered at the organizational level.

Group Level All SMWGs were informed of why the change was desirable and understood what the change would mean to them personally and how Area B and the plant would bene�it. Their representatives on the steering committee (UAW representatives for the line employees and management for the supervisors) ensured that all voices would be heard. Each work group helped shape the way the change was implemented in that group by developing the team mission statement, goals, operating procedures, and so on.

Individual Level

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Prior to implementation, each individual could choose to remain in the work group or move to a different work group in the plant. Only a few individuals chose to leave their work groups. Extensive training provided each individual with the KSAs needed to be successful in the SMWG concept.

Organizational Level This effort ran into problems in two areas. First, no changes were made in the performance appraisal system, so salaried coordinators were still evaluated on the criteria used for supervisors. Thus, coordinators began reverting to their old supervisory behaviors, telling SMWGs what to do rather than helping the groups learn what to do. Second, no changes were made in support systems such as engineering and accounting. Accounting would not furnish the SMWGs with cost and operating ef�iciency information in a form they could understand. Without this information, the SMWGs were unable to determine whether they were meeting their goals. Equally troublesome was the relationship with engineering. Engineers were used to coming into an area and telling the employees what was wrong and how to �ix it. The new system required them to work with the SMWG to determine both the problem and the solution. Engineers saw this process as a waste of their time as they already knew what to do. As a consequence, engineers frequently would not show up at team meetings and would implement changes without consulting with the SMWG that was affected by the changes. Because the engineers did not report to the area manager, he had little control over how the engineers interacted with the SMWGs.

These problems could have been prevented if organizational systems had been addressed as a part of the steering committee’s change management plan. The plant manager needed to be a part of the steering committee as he was the only one with the authority to make systemwide changes.

Training and OD Using OD’s principles-of-change management will increase the probability that your organization’s strategic plans will be effectively implemented. But training also focuses on change, so change principles also apply to training efforts. By including an analysis of organizational issues as an integral part of the training needs analysis, the organization ends up not only with programs that address the KSA needs of employees, but also with an increased awareness of what other problems (the nontraining needs) have to be solved by other means. Trainers also use organizational information to better design programs so that problems related to applying the training are addressed in the training rather than becoming surprises after training ends.

Despite the seemingly obvious advantages of collaboration between OD and training professionals, a gulf sometimes seems to separate the two. Consider the following examples: (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_019)

An executive complains that his training and OD people cannot seem to work together.

Training staff complain at length about a manager they consider unreasonable and attribute her faults to her background in OD.

A training staff member objects strongly when told that training needs analysis data could be used to identify performance problem solutions other than training.

Table 2-2 provides some insight as to why con�lict such as in the preceding examples exists. OD practitioners are typically strategic, and executives are usually their clients. Trainers are typically tactical, and their clients are lower in the hierarchy (see Figure 2-1 for differences between strategy and tactics). It is the nature of the OD practice to challenge assumptions underlying organizational practices. Trainers typically take organizational

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procedures and practices as givens, trying to make people more effective within those practices. For example, suppose that the needs analysis data show that the problems in a work unit are a result of its manager acting inconsistently and arbitrarily. OD professionals more than training professionals would be willing to be guided by the data and confront the manager. Training professionals might be willing to say that no employee training needs were identi�ied, but they are less likely to tell the manager that his or her behavior needs to change. OD professionals, however, are much more likely to get tagged with the “analysis paralysis” label than are trainers, who are seen as “doers.” Yet as Table 2-2 suggests, each would bene�it by working closely with the other because one’s apparent weakness is the other’s strength.

Table 2-2 Differences Between OD Practitioners and Trainers

Issue OD Practitioner Trainer

Role Strategic Tactical

Client Top management Middle-to-lower-level management

Response to problems with organizational politics, structure, etc.

Challenge and Confront

Work around or within the system

Organizational perception Overly analytical Gets things done

Why Trainers Need OD Competencies Trainers can bene�it from using OD, if only because its planning procedures help clarify what is needed in a given organizational situation. We believe that training programs will also bene�it from the application of many other OD concepts and principles. The emphasis OD places on participative approaches to problem solving suggests that training is better when trainees take an active role in selecting their training opportunities and in the training itself. When trainees are involved in the planning stages, they are less likely to demonstrate resistance. This learner-focused orientation opens communication channels and results in higher levels of motivation during the training program. A participative orientation also ties line managers directly to the training process by involving them in assessing their employees’ needs, developing the training, and developing support systems for applying the training back on the job.

In Chapters 4 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i48#ch04) and 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) , we emphasize an open systems approach. Chapter 4 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i48#ch04) focuses on understanding training needs in the context of organizational systems. Chapter 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) emphasizes connections between the training program and other organizational systems. These connections help ensure transfer of the training to the job. Many trainers have told us of their frustrations when trainees were excited about what they learned, but at the conclusion of training, nothing had changed. The design chapter describes why this can happen and how to avoid this type of training disaster.

Force-�ield analysis (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_024) is one among a multitude of OD techniques but can serve as an example of how these techniques can be of substantial bene�it to trainers. The underlying concept is that any situation can be explained by the sets of counterbalancing forces that hold it in place. 20

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(http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_020) Force refers not only to physical forces but also to psychological forces that in�luence individual behavior. For example, if you wanted to understand why a work group is not following the new company procedures, you might examine the forces acting within and outside the group that in�luence the members’ behavior. Tradition, reward systems, and group norms are forces that often exert strong pressure on group members, preventing them from trying new ways of doing things. Other forces that can in�luence group behavior are economic factors; individual KSAs; stereotypes of race, gender, and religion; and group con�lict.

To understand a particular situation, �irst you must identify all the factors that exert in�luence on that situation. Then you must determine whether each factor is exerting force toward change (drivers) or against change (restrainers). All the steps for using the force-�ield analysis are listed in Figure 2-5. The arrows show forces that are driving and restraining change. In this �igure, the restraining forces are more numerous and larger than the driving forces, a combination that would create resistance to change in the people operating within the force �ield. The line of interaction, where these forces meet, symbolizes the current state: This line re�lects the array of forces on either side, which have created the current situation you are trying to change. Thus, for change to occur, actions must be developed to shift the force �ields so that the forces for change are larger than the restraining forces.

Figure 2-5 Force Field Assessment

This model helps trainers understand the actions needed to overcome resistance to change. As we detail in Chapter 3 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i32#ch03) , training is often met with resistance, as it is one of the most personal types of change. Research indicates that change occurs more smoothly and quickly if the forces that are restraining change are reduced before or at the same time as driving forces are increased. Simply increasing the driving forces (putting on more pressure) often results in escalated con�lict. This con�lict then becomes another force for resisting change as individuals become more defensive and positions harden.

Why OD Professionals Need Training Competencies Although generally successful, OD has experienced some glaring failures, many of which could have been avoided with more attention to training principles. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_021) Earlier, we

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identi�ied the types of training required as a prerequisite or supplement to various OD techniques. OD interventions nearly always involve groups of employees in structured activities such as planning, problem solving, and intergroup con�lict management. It is naive to assume that one can bring people together to solve new problems, in new relationships, in new situations, with new processes, and without prior training. These employees need to

have a common KSA base in these areas,

understand group dynamics and be skilled at working in groups, and

understand and be skilled at using a common problem-solving model.

If OD practitioners are not skilled in designing and implementing training programs, they must develop collaborative relationships with trainers who are. Such collaboration provides an excellent opportunity for involving internal training resources in change efforts. It is especially helpful when an OD consultant, familiar with good training practices, is retained from outside the organization. When HRD and OD work together in a collaborative fashion, they will go a long way toward defusing any con�lict between external consultants and the HR function.

If OD is to be a long-term effort, the change must be institutionalized into the way the company does business. In one study, only about one-third of the OD efforts examined lasted more than �ive years. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_022) This �inding indicates that training is a critical component to institutionalizing the change. Three situations are identi�ied as key times for training:

1. When the OD process is started, training is needed to provide education about the change process and to provide the necessary KSAs.

2. After the process has been in place for a while, some retraining or upgrading of KSAs is required to sustain the process.

3. As new employees enter the organization, they need an understanding of the process and the KSAs.

Although most organizations provide the initial training, few conduct follow-up training or modify their new- employee training to include the new process and the related KSAs.

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2.5 Putting It All Together Recall from Figure 2-1 that it is not enough for the organization to develop competitive strategies—these strategies must be followed with action. The strategies are implemented through a tactical action plan consisting of the actions required and the unit(s) responsible for those actions. The process begins with assigning objectives to the different work units of the organization. The units must then develop strategies and implementation tactics to achieve the objectives. Eventually, they are translated into individual employee objectives. The objectives for the HRD unit, as for all functional areas, must be tied directly to organizational strategies. Of course, for HRD, these will be �iltered through the strategies the HR unit developed to achieve its objectives.

HRDs Relationship with Other HR Functions The HRD function is intractably tied to the other HR functions. Recruitment and selection require an orientation and often some job training for new hires. As advancements are made in these areas, recruiters and hiring authorities will need training in the use of the new methods. Anytime a performance appraisal system is modi�ied, an organization will need to train those who will be using and administering the system. For example, pay for performance systems require the setting of objectives jointly between managers and subordinates and then evaluating the achievement of those objectives later on. These processes require managers to have interviewing and feedback skills prior to the implementation of the system. Furthermore, any good performance appraisal system should also have a developmental component. Training needs to be available for those wishing to improve.

If there is any form of incentive pay, training in its proper use will be necessary. The health and safety unit requires HRD to supply necessary training for assuring a safe work environment. If the OD unit uses surveys to assess employee attitudes, then managers will need to be competent in feeding back results to their employees in an effective manner.

A great deal of training is often required for �irst-line supervisors in the most effective methods of supervision to assure a positive labor relations climate. In a unionized environment, they also may require training in effective interactions with union of�icials, as well as having a good understanding of the union contract and the grievance procedure. Some non-union companies also have grievance resolution systems in place. Competency in working these systems is needed.

So as you can see, training is a key aspect of most of the other HR activities. Without an effective HRD unit, much of what HR does would not be very effective.

Developing an HRD Strategy Without a strategic plan, training is likely to be managed in a haphazard manner, its resources underutilized, and its full strategic value not realized. At the most basic level, the training function must make strategic decisions about where it will focus its resources and energies. It also depends in part on the environment in which training operates, the resources available (�inancial, material, and personnel), and the core competencies contained within the training function. Analysis of these areas leads to strategic decisions about the technology that should be used to develop necessary employee competencies. The organization and its HR unit form the bulk of HRD’s environment. Thus, in developing an HRD strategy, these areas must be analyzed. How to conduct this analysis, and sources from which data can be obtained, are detailed in Chapter 4 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i48#ch04) . For now, we will provide some examples of how HR and HRD strategy might be developed based on the competitive strategy of the organization.

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Organizational and HR Strategy The market leader strategy depends on innovation; therefore, employee knowledge and skills are critically important. Highly skilled and knowledgeable people must be hired and developed. They need to work under a structure that allows them latitude in how they go about their work. Reward and feedback systems must focus on long-term rather than short-term performance. Some amount of failure must be expected as employees try out new ideas. The failure of an experiment can be positive if it brings the organization closer to realizing its objectives through the learning that occurs. If failure is punished, employees will be reluctant to attempt new things. Hewlett-Packard, Raytheon, and PepsiCo illustrate this philosophy by selecting highly trained and skilled employees, being committed to their long-term development, and developing systems that evaluate and reward employees for their contributions to the company’s objectives. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_023) HRD in the market leader organization must adopt a strategy that builds on the already high level of competency brought into the organization.

Cost leader organizations, in contrast, emphasize tight �iscal and management controls. Because their leadership position is dependent on their ability to produce high volumes at low cost, ef�iciency and productivity are critical. Strategies for reducing costs include reducing the number of employees, reducing wages and salaries, using part-time and contract labor, and improving work methods. Conforming to standardized procedures is emphasized in these organizations, and training helps ensure conformance. On-the- job training (OJT) techniques are used more frequently for line employees. Typically, in these organizations it is only at the middle-management levels and higher that more autonomous decision making occurs and that higher-level competencies are emphasized. In these organizations, training is more likely to be focused on management due to the high structure imposed on job tasks at lower levels.

Integrating HRD and OD Activities Most organizations’ competitive strategy calls for some type of performance improvement, both for the organization as a whole and for individuals. Perhaps the most effective way to ensure the seamless implementation of performance improvement plans is to integrate HRD and OD. Trainers and OD professionals have legitimate differences in the nature of the change they are responsible for, but their interests are intimately connected. Each can provide valuable service to the other. Nonetheless, as we noted, they are often at odds with each other. One reason for the division between them is that companies typically organize around their different functional activities, and OD and HRD departments are often separated. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_024) This separation increases the differences in perspective, role, value of service, clients, and so on. An obvious solution is to house them together in something like a performance improvement department within HR. This would be an example of a structural change to align the organization’s internal structure with its strategic direction.

Of course, this type of organizational change effort will require attention to critical change management issues. For example, such a department would need different measures of success than either currently uses. Success could be measured by contribution to business results, rather than by the number of bodies passing through training courses or the number of teams built and facilitated by OD staff. This overarching goal would require trainers to identify system de�iciencies that are likely to interfere with training, and OD staff to identify KSA de�iciencies that are likely to interfere with system changes.

Companies such as Universal Card Service made these changes and improved their business operations. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_025) They found that integrating OD and training activities requires sponsorship from the top HR and other executives. One way toward full-scale integration of these activities is to develop pilot collaborations focusing on a particular business problem. This approach allows staff from each discipline to learn more about how the other operates and where the synergy exists. In addition, the HR executive needs to encourage people in both disciplines to learn as much as possible about the other. Another process that should lead to better integration of training

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and OD activities is having the staff in both areas work together to identify both barriers to collaboration and ways to remove those barriers. This activity not only creates familiarity but also uses the OD principle of involving those affected by the change in the change process. By integrating the two activities, the organization also has the potential bene�it of cross-functional training, increasing the KSAs of both groups. At Domtar, Claude Belley is the senior vice president of human resources and organizational development. Do you think he understands the importance of this type of integration? Might this have contributed to Domtar’s success?

Some Strategic Training Alternatives The number of possible strategic choices an HRD unit might make is far too large to cover them all. We will look at one key strategic decision: whether to outsource training, keep it in-house, or some of both. This example will show you how HRD strategy is tied to both the HR and competitive strategies of the business.

Internal Provider Strategy Large organizations in a stable environment, where training needs do not change rapidly, often choose to do most of the training themselves. The “in-house” strategy directs all, or nearly all, training to be developed and provided by the internal HRD unit. The types of training needs that will be addressed, the development of programs to address those needs, and the evaluation of those programs are typically determined by a centralized HRD function in consultation with the HR executive. Because it is most effective in a stable environment where training needs do not change rapidly, it is most appropriate for cost leader companies. The principal advantages of this strategy are the control over the training content, consistency in delivery across the organization, and reduced training costs. In this strategy, a single program is developed to meet a particular training need across many groups of employees. As a result, the content and delivery can be controlled for consistency across the organization. Because in-house specialists develop the content and design of the program, it is tailored to the company’s needs. Because the cost of development can be spread across a large number of employees, the cost per employee is reduced.

This strategy requires a fairly large centralized training staff. Core competencies for HRD departments using this strategy include all those necessary to identify training needs; design, develop, and conduct training programs; evaluate the programs; and manage the training processes and systems. Because of the resource requirements, typically only larger companies adopt it. This is not to say that all large companies adopt this strategy, only that they are more capable of adopting it.

A way to reduce centralization but maintain a low cost is to have training developed by the corporate HRD staff but delivered by other employees or electronically. This system places a higher reliance on train-the-trainer and self-learning methods (e.g., videos and computer-based training). In this approach, after the training programs are developed and handed off to the various business units, the training is completed by the trainee alone or facilitated by a business unit representative (e.g., supervisor or in-house technical expert). Those programs with face-to-face components will need to have facilitators go through a train-the-trainer course to familiarize themselves with the content and methods.

Suppose Hershey identi�ied “listening skills” as a problem area for the sales force in dealing with customers. In response, HRD developed a listening skills training program and decentralized the training so it was conducted by team managers within the division. This type of training includes many experiential exercises and some behavior modeling. These managers would, therefore, need to demonstrate effective listening skills, be familiar with the exercises and skilled at facilitating them, and be skilled at providing constructive feedback. Because there are differences in managers’ training capabilities, different locations would receive different levels of training. For this reason, evaluation would become especially important. Often the strategic KSAs that training is intended to provide are subverted through modi�ications in the training content and design at the work unit level. One solution to this problem is to provide extensive training and develop reward systems that motivate the work unit trainer to be consistent in presenting the material and applying the methods built into the training. However, this level of monitoring can substantially reduce the cost advantage.

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Outsourcing Strategy This strategy employs outside training vendors for all, or almost all, training activities. The HRD unit’s role is to select and manage training suppliers. Suppliers may be training �irms, consultants, professional seminars, college/university courses, and the like. A full commitment to this strategy would use outside vendors to conduct all aspects of the training process from the training needs analysis through evaluation.

The outsource strategy is appropriate for larger organizations whose training needs vary dramatically over short periods of time and for small businesses and organizations with a small or nonexistent training function. Large market leader �irms, for example, will �ind many advantages in this strategy. Small businesses adopt outsourcing primarily for budgetary reasons. This strategy provides a �lexible way of meeting changing and diverse training needs with professionally developed and administered programs. It also �its well with a decentralized HRD structure. A small central HRD staff is involved in the budgeting process, monitoring of training-related policies, and providing consultation and support to the various units. For example, compilation of lists of approved vendors, payment of vendors, and mandated training are decisions that might be made by the central HRD group. In a decentralized organization, the different operating units of the organization (business units, divisions, geographical units, and the like) are then free to select from the list of approved vendors and programs those best suited to their needs and within their training budget. In a more centralized structure, the HRD unit would select and manage the vendors for each location. Program selection would derive from mutual agreement between the central HRD unit and the operating unit.

The core competencies required of the HRD unit in this strategy include a thorough understanding of the training process, skills in evaluation and selection of appropriate training providers, and general management KSAs. As a large number of �irms and individuals offer training services, the manager must carefully screen potential providers. Obviously, cost is one factor to consider. Typically, the low-cost providers are those who recently entered the �ield. However, the fact that a provider is more expensive or experienced does not mean that its quality is higher. Within your budgetary limits, the primary criterion should be the ability to provide the desired KSAs to your employees. Some key questions for making this determination are listed in Table 2-3. Of course, this list is not suf�icient to evaluate the provider fully, but it provides a good start for making comparisons. These issues will be discussed more completely in Chapter 8 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i113#ch08) .

Managing the training providers requires typical management competencies. The provider must be given clear direction—that is, the goals and expectations must be clearly spelled out. The various training providers and their programs need to be organized in a logical �low with minimal disruption to the activities of the company. The providers’ activities need to be monitored to ensure that they are acting to plan and that goals are met. An open communication system must be established between the training function and the training providers so that both parties can access the needed information.

Even though �lexibility is a key advantage, the outsourcing strategy can also reduce costs. It can translate into substantial savings on HRD staff salaries, bene�its, and taxes. The cost per training session is usually higher because the cost for training vendors is almost always higher than the comparable cost of internal training staff (even including bene�its and taxes). However, the vendor is paid only for the contract period. With this strategy, no layoffs or staff relocations are required when the need for training slacks off. Also, because vendors can spread program development costs across clients, the company typically pays less for program development.

Table 2-3 Questions to Assess Training Provider Capabilities

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What is the trainer’s background (education, experience, etc.)?

Has the trainer ever provided these particular training programs or services before?

Has the training been evaluated? If so, what levels of outcomes were evaluated, and what have been the results?

Can the trainer give you the names of people in these companies who could speak knowledgeably about the trainer’s products and services?

Can the trainer give you names of and permission to contact the following people?

Trainees who received the training

The person who was the trainer’s primary contact in the client organization

The person who monitored or coordinated the training

How does the trainer go about developing a program, delivering training, or providing a training service? Can the trainer provide examples or an outline of his approach or process? Will this �it your organization’s culture and budget?

If the training is already developed, can the trainer show you materials, such as handouts, exercises, and videos?

If these materials are not speci�ic to your organization, how will the trainer alter them to make them appropriate for your situation?

To reduce costs further, a train-the-trainer approach can be used with the outsourcing strategy. In this case, a training vendor (rather than HRD staff ) trains one or more employees to use the vendor-developed program. For example, it might be too costly and disruptive for a small business (of, say, 15 employees) to send all its employees to a customer service seminar and workshop. Instead, the company might send the general manager to the workshop and then to a train-the-trainer session conducted by the workshop provider. When the general manager returns to the company, she can train the rest of the employees as time allows and for little additional cost (such as paying a fee for using the materials, etc.). The general manager can also modify the training, customizing it for the speci�ic needs of the organization.

The Mixed Strategy Most �irms use some combination of the two preceding strategies, providing some training internally and contracting some to external providers. Decision making is centralized for some training activities and decentralized for others. Different philosophies suggest where centralization should take place and what training should be developed or conducted internally. One approach is to conduct ongoing training internally and contract to external providers all new training. New training is usually required when some aspect of the environment changes. This strategy allows the �irm to be adaptable to changing aspects of the environment while focusing its internal efforts on ongoing training. If uncertainty surrounds the training that is required or how quickly the need will change, this strategy puts the company in a more �lexible position to respond. In addition, less of the development costs of new training are borne by the company. A negative aspect, however, is that training developed by outside vendors can be less directly relevant to the employees, and additional resources might have to be allocated to tailor the training to the organization. Also, if the training need becomes

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ongoing, plans should be developed to provide it internally, an action that will require agreement from the external provider. Another approach is to develop all new training internally and contract out ongoing training.

The mixed strategy reduces the size of the organization’s training staff somewhat. Typically, trainers are individual consultants who are willing to work as contract employees for the �irm. This strategy ensures the �it between the training and the training needs, but the organization must shoulder all the development costs. These costs may be offset by the reduced staf�ing needs. A careful break-even analysis would determine whether reduced staf�ing would adequately compensate for increased development costs. Many companies �ind they do, as the use of vendors for training has been increasing. For example, General Motors doesn’t provide “Mr. Goodwrench” training, an outside vendor does. Firms such as Avaya, Cisco, Nokia, and Hewlett-Packard all have outsourced signi�icant amounts of their training. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_026)

The mixed strategy might be appropriate for organizations with training needs that are extremely diverse from one sector of the organization to another. MASCO Corp., a home improvement and building products company, is a good example. MASCO consists of an assortment of divisions producing different products and services. The corporation has adopted elements of both the market leader and cost leader strategies. The training needs of the different divisions are unique for the most part. It would be expensive for MASCO to hire a centralized HRD staff to handle all the training needs for its divisions. It makes more sense for the HRD function to be decentralized to the divisions. On the other hand, when MASCO was in the process of rede�ining its culture after a period of strong growth, the company instituted an executive development program that was centralized in its corporate headquarters. This centralized program, in which key executives and high-potential managers are given the opportunity to earn an MBA, is provided by an outside vendor (Eastern Michigan University [EMU]). The company’s HR executives and training staff worked closely with EMU to ensure that course materials met MASCO’s strategic KSA needs while re�lecting the breadth and rigor of a traditional MBA program. Materials were customized to re�lect problems and issues MASCO faced. It wasn’t the only training that the company centralized. As part of its strategy to realize synergies among its divisions, it instituted a training program in logistics in which the content was customized by a different outside vendor (Michigan State University) to meet MASCO’s strategic needs. Again, sets of employees from all divisions take part in the program. Thus, MASCO’s mixed training strategy takes advantage of centralized programming for some of its strategic training while decentralizing the rest.

We have looked at just one of the myriad HR and HRD strategy implications. The most important point is for you to understand that the organization’s competitive strategy and the supporting HR strategies determine HRD’s strategic direction.

One �inal note. The role of HR should not end with the selection of an outside vendor. Someone should be assigned to work closely with the vendor for the following reasons. Someone inside the organization has a thorough understanding of the organizational culture and how things work. This person can be a valuable asset to the outside vendor through their knowledge of the inner workings of the organization; thus providing direction, cutting through red tape, and generally providing the vendor with insight into how best to get things done. She would be able to provide important insights into the employees to be trained and how the customized training should look. She would also be able to provide information as to the value of performance reviews in needs assessment, as well as assist in the design of such an assessment. Assisting in the development of the training objectives would assure that the training was on track. In the development of any role-plays or cases for use in the training, the HR person would be able to provide guidance to assure these exercises are relevant to the trainees. Finally, by having someone working closely with the vendor throughout the process, two outcomes are likely. First, the �inal product will be what was expected; no surprises. Second, working closely with the vendor at all levels of the training (needs assessment, design, development, etc.) will require a great deal of communication between the HR person and the vendor. Evidence suggests that those organizations that are communicating on an ongoing basis with their vendor typically enjoyed better results than those that do not. These organizations reported better training designs and higher overall satisfaction with their vendors than

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those that did not communicate in that manner. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_027)

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2.6 Focus on Small Business Is it necessary for small businesses to get involved in strategic planning to be successful? The answer is yes. There is evidence that those that do not do strategic planning have a higher incidence of failure than those that do. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_028) Furthermore, strategic planning is positively related to small business performance. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_028) In spite of this bene�it, many small business owners and managers do not engage in strategic planning. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_030) Some of the reasons are outlined in Table 2-4. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_031)

Table 2-4 Small Business Owners’ Reasons for Not Planning Strategically

Not enough time

Too busy with day-to-day operations and concern about tomorrow are the excuses for not planning for next year.

Unfamiliarity Lack of awareness of strategic planning or failure to see its value. See it as limiting �lexibility.

Lack of skills Do not have the skills or time to learn them. Do not wish to spend money to bring in consultants.

Lack of trust Want to keep key information con�idential. Do not wish to share this information with other employees or outsiders.

What can be done to encourage small businesses to become more involved in such planning? First, education about the advantages of such efforts would be useful. Even large organizations use the excuse that they are too busy �ighting �ires to �ind time for planning. However, if they spent time planning, they might see fewer �ires. Bringing small business owners and managers in touch with those who use strategic planning successfully in their small businesses is a good start for this education.

The skills issue can be addressed by using a less formal and rigorous process. Evidence indicates that small businesses that use a more informal strategic planning process can be more effective than those using more formal processes. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_032) Additional evidence suggests that, at the very least, a formalized process produces no better results. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_033) The emphasis on structured written plans in strategic planning might be dysfunctional for the small business. A less formal way to approach strategic planning for the small business is provided in Table 2-5. By researching and answering these questions, the small business owner will be well on the way to a strategic plan.

Table 2-5 Strategy Questions for Small Business

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1. Why are we in business?

2. What are the key things we are trying to achieve?

3. Who is our competition, and how can we beat them?

4. What sort of ground rules should we be following to get the job done right?

5. How should we organize ourselves to reach our goals and beat the competition?

6. How much detail do we need to provide so that everyone knows what to do? How do we make sure that everyone gets the information?

7. What are the few key things that will determine whether we make it? How do we address and keep track of them?

What about the issue of lack of trust? Research suggests that when faced with threats, small �irms bene�it by going outside the organization for help. Unlike large organizations, they are unlikely to have the necessary internal resources to address these threats. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_034) Without a source that they trust, they simply will not obtain the necessary information or assistance. Small businesses need to seek out possible resources and establish appropriate relationships in “good times” so that they can be drawn on for help in “bad times.” (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_035) The small business owner can evaluate the relationship during times when threats are not creating a crisis.

Will an increase in strategic planning result in a corresponding increase in the attention that small businesses give to training? Perhaps not, but we believe that it will focus attention on the “right” training. Training is often ignored as a strategic initiative because owners and managers do not have a clear model for making decisions about whether training activities will lead to a competitive advantage. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_036) Involvement in strategic planning will provide such direction. As we discussed earlier, when the need for training emerges from the strategic planning process, it is clearly tied to the mission and objectives of the small business. For example, in companies that include International Organization for Standardization (ISO) certi�ication in their strategy, training is clearly value added because certi�ication will not be granted without it.

One �inal point should be made about small businesses. Because they are small, communicating a strategic direction and implementing the plan should be considerably easier than with a large �irm. The evidence indicates that in implementing strategic plans, small companies needed to anticipate and prevent fewer problems than larger �irms. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_037) Some problems still do exist, however. For example, the small business that seeks to become a preferred supplier to a company doing business must receive ISO certi�ication. Metro Tool & Die, a small manufacturer in Ontario, for example, became ISO certi�ied in 1999, in order to be able to supply parts to the auto industry. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_038) Many small companies used the strategic planning process to determine whether becoming certi�ied is worthwhile. The planning process allows them to see how certi�ication �its their overall competitive strategy. Training in Action 2- 3 shows how different companies used the strategic planning process to make the decision.

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2-3 Training in Action Stories Along the Road to ISO (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch02biblio_039)

Rivait Machine Tools, which provides electrical discharge machining of steel, employs 14 people. The president, James Rivait, made an important strategic decision to diversify into the aerospace industry. To even be considered as a supplier in this industry, a company must be ISO 9000 certi�ied. Eighteen months later and $100,000 poorer, Rivait achieved certi�ication.

Early in 1993, Grace Specialty Polymers set out in a new strategic direction that required ISO 9000 certi�ication. The strategic plan set a target of achieving certi�ication for four separate locations by the end of 1994. To accomplish this goal, an executive steering committee was assembled, consisting of the general manager and employees who reported directly to him. The committee was to provide the direction, commitment, and resources needed. Next, an ISO implementation team was set up. Department managers made up most of this cross-functional team. Although successful, the members of the team indicated the process was not easy. Their assessment was that a company must be committed to getting it done. You can’t have less than a full effort.

Reelcraft Industries embarked on an ISO certi�ication program to improve processes. It took the company two years to achieve certi�ication, and the paperwork it produced was awesome. The main difference is that Reelcraft now “builds quality in rather than inspects errors out.” Among the chief bene�its are increased knowledge, skills, and communication.

Cavalier Tool & Manufacturing examined the ISO process and determined that it did not make strategic sense for them at that time. Sometimes a customer faces a short-run emergency and needs a “down and dirty mold.” “If we were ISO 9000 certi�ied, we would not be allowed to take on that business. All your work must follow the ISO process, and so I would have to turn down this customer. I am not ready to do that,” President Rick Jannisse said. Furthermore, he is not disposed toward the discipline required to be ISO certi�ied. Examining the external environment, he realizes that he may be forced to become certi�ied eventually, but not now. At least he is aware of the implications of the decision he is making.

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Summary Training activities need to be aligned with the organization’s strategy to be effective. Part of the alignment process is the development of training unit strategies in support of the organizational strategies. So it is important for training professionals to understand the basics of the strategic planning process. Two examples of competitive strategy—market leader and cost leader—were presented to illustrate how differences in strategy in�luence the internal operations and lead to different training needs. The organization’s strategic choice will depend, in part, on key factors in the external environment and on the general level of environmental uncertainty. The organization’s core technology in�luences not only external strategy, but also the alignment of internal operations with those strategies. Organizations must develop internal strategies to align their operations with the external strategies. For example, whether a company adopts a market or a cost leader strategy will have different implications for how HR and HRD go about their business. The HR department needs to be involved in the strategic planning process to provide information about workforce readiness to implement various alternative strategies being considered. HR also provides input in relation to managing change arising from new strategic directions. From this and other information, a sound strategic choice can be made.

The choice of strategic direction will also help determine the way HRD is structured. Cost leader organizations operate in a stable environment, and more training can be centralized. Market leaders, conversely, operate in an uncertain environment, and the HRD department needs to be more decentralized. Competitive strategy will also in�luence the degree to which HRD will outsource training.

OD focuses on improving the effectiveness of the organization through planned change. Strategic planning and training can bene�it from the concepts, principles, and techniques used in OD. While training is focused on improving employee capabilities, OD is focused on managing performance. Improved capabilities do not translate into improved performance unless the performance management system is aligned to support those capabilities. Conversely, no matter how good the performance management system, employees will not perform if they don’t have the capabilities. For this reason alone, the HRD and OD units need to work closely together. While there are differences in the focus of these two units that often create friction, their ultimate objectives are the same.

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Key Terms Competitive strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term01)

Core technology (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term02)

Cost leader (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term03)

Decision autonomy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term04)

Division of labor (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term05)

Environmental complexity (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term06)

Environmental stability (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term07)

Environmental uncertainty (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term08)

Force-�ield analysis (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i24#ch02term09)

HR strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term10)

HRD strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term11)

Internal strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term12)

Market leader (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term13)

Mechanistic design (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term14)

Nonroutine technology (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term15)

Organic design (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term16)

Organizational design (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term17)

Organizational development (OD) (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i24#ch02term18)

Organizational mission (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i29#ch02term19)

Organizational strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term20)

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Organizational structure (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term21)

Proactive strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term22)

Reactive strategy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term23)

Routine technology (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term24)

Strategic planning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i23#ch02term25)

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Case Analysis CASE: Strategic Planning at Multistate Health Corporation As you read this case, think about the relationship among competitive strategy and both the HR and HRD functions at Multistate Health Corporation (MHC). The case was written in 1994 and is real, but the corporation asked that its name not be used. The federal and insurance environment for health care has changed substantially since that time; however, the strategic planning issues faced by MHC remain relevant today. The information provided here re�lects the organization in 1993 as it was completing its strategic planning process.

The Organization MHC is a health care provider owned and operated by a religious order. MHC owns 30 hospitals and four subsidiary corporations employing more than 10,000 people. Its headquarters are in Michigan, with hospitals located in 17 states across the country. The overall organizational structure and the corporate HR structure are depicted in Exhibits 2-1 and 2-2.

Exhibit 2-1 MHC Organization

*Each hospital has a CEO reporting to the regional executive vice president (EVP). Hospital are referred to as divisions within MHC and have a CEO as well as a functional staff (including HR) for conducting divisional operations. Corporate HR is included as part of corporate staff, as desicribed in Exhibit 2-2.

Exhibit 2-2 MHC’s HR Organization

Competitive Strategy In line with its mission, which is rooted in the tenets of the order’s religion, MHC focused on providing care to the indigent and less able members of the community. It was reasonably successful until 1989, when the health

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care industry began to experience considerable change in governmental regulations and insurance procedures. At the time of their strategic planning, hospitals were reimbursed on the basis of a preset, standardized price for treatment rather than the “cost-plus” method used previously. The federal and state governments were putting increasing pressure on health care institutions to reduce costs. In addition, new medical technologies and procedures being developed were expensive to acquire and implement. MHC recently acquired subsidiary corporations to develop or acquire new procedures and technologies. The subsidiaries were to work in partnership with the regions to implement new procedures and technologies.

MHC has lost money every year since 1987. Currently, it is experiencing an oversupply of bed space in most of the communities with MHC hospitals. Projections indicate that the need for inpatient services will decline while the need for outpatient services will increase. Nontraditional health-related services are also projected to increase (e.g., services in which patients and their relatives are trained in self-care or care of relatives). In short, the market is becoming much more competitive while products and services are rapidly changing.

MHC just �inished its corporate strategic planning process and planned to develop a two-pronged market strategy to deal with its changing business environment. One major area of focus is technology. The strategic planners departed from the previous strategy, opting to become a leader in the development of new health care technologies and procedures. They felt that the new developments would allow quicker recovery times, thus reducing the hospitals’ costs. In addition, the technology could be marketed to other health care providers, generating more revenue. The drawback was that new technologies and procedures were expensive to develop and were often subject to long waiting periods before being approved by the insurers and government agencies.

The second prong of the strategy was directed toward the hospitals and was focused on improving ef�iciencies in basic health care and outpatient services. This would allow them to continue to provide for the basic health care needs of the less fortunate. The substantial governmental fees, grants, and other revenues tied to this population would provide a pro�it only if ef�iciencies could be developed throughout the corporation.

Implementation Issues Carrie Brown, hired six months earlier as corporate vice president of human resources, listened to several days of strategy discussion, without participating much. She now felt that it was time to address the HR implications of these strategies.

“While I agree that these are good strategies,” Carrie said, “I don’t know if we have the right people in the right places to carry them out. A few of our regional and divisional executives are already doing some of the things you’re talking about, but most of them have grown up in the old system and don’t know how to go about cost cutting in a way that doesn’t diminish the quality of our service. Many of our divisions are in rural areas and haven’t kept up with technology. We do have some middle- to upper-level managers who are up to date in cost cutting and technology implementation, but they are scattered throughout the organization.”

Mitchell Fields, president and chief executive of�icer (CEO), suggested, “Why don’t we just move those people who can implement our strategies into positions where they have the power to make it happen?”

“Unfortunately,” Carrie said, “we have no accurate data about which of our people have the capabilities. It would be a mistake to move forward unless we’re sure that we have the knowledge and skills on board to be successful. What I’ve discovered in the short time I’ve been here is that we have grown too large for our human resource information system (HRIS). We’re still doing most of the data collection on paper, and the forms used are different in each of the divisions, so we can’t consolidate information across divisions, and even if we could it would take forever to do it by hand. We have different pay scales in different divisions, and you can’t get a VP in Boston to take a CEO position in Iowa because he’d have to take a cut in pay. Basically, what I’m saying is that we don’t have a coherent HR system in place to give us the information we need to put the right people in the right places.

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“Another issue is that our current structure isn’t conducive to setting up partnerships between the subsidiary corporations and the regions. The corporations developing the technology are seen as pretty distant from the regions and divisions. While the subsidiary corporations will bear the developmental or acquisition costs, they are going to want to pass those along to the regions and divisions. The divisions will then have to bear the costs of implementing the new technology and working out the bugs. Once all the kinks are worked out, the subsidiaries will be selling the technology to our competitors at lower prices (due to volume) than they charged the divisions. The corporation and subsidiaries are likely to pro�it from this arrangement, but the divisions are likely to show losses. As you know, our compensation of division executives is based on pro�itability. They are likely to resist cooperation with the subsidiaries. Our current systems don’t let all of our businesses come out winners.”

“I understand what you’re saying,” Mitchell said. “Our competitive strategy is for the big picture and the long term. If these HR issues are going to be a problem, we have to �ix them right away. We are going to have to work out some way for both the subsidiaries and the divisions to come out winners in moving new medical technology forward. Assuming we are able to put our HR house in order . . . get the right systems and people in place. . . . Are there any other concerns about adopting our strategies?” Hearing no additional objections, he said, “Okay, then, let’s get to work on putting an implementation plan together, and �irst on the list is our HR system.”

HR Follow-Up to Strategic Planning at MHC MHC determined that it needed to address the HR implications of the new climate in health care and that some type of planning system was in order, so it hired an outside consulting �irm. The consultants agreed that some type of system would likely be appropriate, but they were not ready to stipulate what that system would look like. They conducted some initial diagnostic interviews, lasting one to two hours, with all of the divisional CEOs, the regional executive vice presidents (EVPs), the corporate CEO, and the corporate VPs, including the VP of HR and the VP of OD. The interview format is shown in Exhibit 2-3. The following information was obtained from the interviews.

Exhibit 2-3 Agenda and Clari�ication of Issues for Human Resource Planning System

1. What is the purpose of this meeting? To enhance and develop the objectives of the human resource planning system (HRPS).

2. What is HRPS? HRPS is a business planning system designed to provide quality data to enhance individual and organizational decision making in all aspects of human resource management.

3. Why was I asked to participate in this meeting? Because you are a key decision maker, we want to ensure that HRPS �its the needs of your organization.

4. What speci�ic information should I provide? We want your input regarding the following:

A. Should administrative access to the data in HRPS be local, regional, or only at the corporate level?

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B. Who in your organization would use and bene�it most from this system?

C. What, if any, problems are there with current information used in human resource management decisions (i.e., recruiting, training, appraising, etc.)? For example, do you lack information as to which people are capable successors for certain jobs, and do you know what recruiting sources produce the best employees?

D. What values of the corporation should be incorporated into HRPS? How might these values be incorporated?

E. As you see it, ideally, what job responsibilities will change in your organization as a result of HRPS?

The current HR activities conducted at the corporate level are as follows:

1. To collect and store résumé-type information for all employees. This information includes demographic data, employment history, and performance evaluations.

2. To select divisional CEOs, regional EVPs, corporate of�icers, and staff professionals, and to assist at the regional and divisional levels in the selection of management-level employees, primarily through posting the position and through word-of-mouth about who is competent and available.

3. To sponsor occasional management development programs at the corporate level, although no system is in place to determine whether these are perceived as valuable or necessary. Most management development is done externally with tuition reimbursement, and some is done by individual divisions.

The interviewees expressed varying degrees of dissatisfaction with the following:

1. No system for comparing internal candidates for positions. Performance evaluation is decentralized.

2. No system for making known the criteria for positions. People do not respond to posted openings because rejection is a block to future promotion. Recommendation from a higher-up is known to be necessary. A related complaint was that many CEOs will not recommend their best people either because the CEOs rely on them heavily or because the bright young people might eventually be competition.

3. No system for evaluating the KSA required of a CEO in one part of the corporation compared with that of another. For example, the CEO in Grand Rapids has different responsibilities compared with a CEO in Detroit, but no one at the corporate level knows what the differences are.

4. No corporate HR philosophy or strategy guides the organization in its HR activities.

Individuals at the corporate, regional, and divisional levels reported slightly different perceptions of the priority of needs for an HRPS. See Exhibit 2-4.

Exhibit 2-4 Rank Order of Top HRPS Objectives by Organizational Level

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Organizational Level

Improve Selection/ Search Process

Develop a Succession Plan

Forecast Critical Hr Skills

Develop Critical Hr Skills

Create and Utilize Career Development

Corporate 2 4 3 5 1

Regional 1 3 4 5 2

Divisional 1 5 4 3 2

Although monitoring equal employment and af�irmative action is in the company’s mission statement, it was considered important by only one respondent. The various levels disagreed on what job classi�ications should be in the HRPS: Corporate and regional personnel preferred to include only executive-level personnel, and divisional personnel wanted to include data down to the �irst-level supervisor. As an interviewee stated, “The MHC value statement says that we respect the dignity of all individuals. To exclude people below the executive level tells them they are worth less.” On the issue of control and administration of the HRPS, corporate and regional executives preferred corporate- or regional-level administration, while divisional executives had a strong preference for direct access. Some expressed concern that corporate administration would reduce divisional autonomy in human resource decision making. The degree of centralization had been a sore point for several years. The divisions previously operated individually as pro�it centers, but corporate headquarters was discussing the need for a more integrated approach.

After reviewing the consultants’ report and meeting with the consultants, the executive committee (representing the three levels of management) arrived at a consensus on the following HRPS objectives:

1. Improve the selection/search process for �illing vacant positions.

2. Develop a succession plan.

3. Forecast critical skill/knowledge and ability needs.

4. Identify critical skill/knowledge and ability de�iciencies.

5. Identify equal employment and af�irmative action concerns.

6. Create a career development system that re�lects the organizational mission (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch02_025) .

The following HR philosophy was developed and approved by the MHC board of directors:

As an employer committed to the value of human life and the dignity of each individual, we seek to foster justice, understanding, and a unity of purpose created by people and organizations working together to achieve a common goal. Therefore, we commit ourselves to the following beliefs:

1. People are our most important resource.

2. The human resource needs of the organization are best met through the development of employees to their maximum potential.

3. Justice in the workplace is embodied in honest, fair, and equitable employment and personnel practices with priority given to the correction of past social injustices.

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Case Questions 1. Describe MHC’s strategy in terms of market position. Also, identify the type of external environment

MHC is operating in and the degree to which the strategy matches the environment.

2. Identify the type of structure MHC currently uses in its primary businesses. Describe the �it between the structure and the competitive strategy. Describe any structural adjustments MHC should make to maximize the effectiveness of the strategy.

3. Identify any areas where current management KSAs are not aligned with effective implementation of the competitive strategy.

4. Describe how MHC should go about addressing the KSA de�iciencies you have identi�ied in the previous question. Your answer should be consistent with the mission and values of MHC.

5. Assume that you are the HRD manager and the competitive strategy was given to you prior to its adoption. Using principles and concepts from the chapter, what recommendations would you give to the strategic planning team?

6. Given the strategy, what tactical activities can the HR unit in general, and HRD speci�ically, develop to support the strategy (be sure to include the implementation of the HRIS)? Identify sources of support and sources of resistance to these tactical activities and point out any areas in which collaborating with the OD unit would be advisable.

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Exercises 1. Conduct an analysis of HRD’s environment at the company you work for (if you’re going to school and

don’t work, use the school’s environment). What are the opportunities and threats to HRD in that environment? What demands does the environment make on the HRD department?

2. Form groups of three to �ive people, one of them having been provided with training by their employer within the last two years. Have this person explain the company’s mission to the rest of the group. Then have the person describe the type of training that was received. The group’s task is to determine the linkage between the training and the mission.

3. Identify two organizations with different environments and core technologies. Describe these differences. Indicate how the HRD strategies of these companies might be similar or different. Provide a rationale for your conclusions using relevant concepts from the chapter.

4. Examine the mission at the institution you are attending. Examine the one for your area of study (if it has one). Do the two relate? On the basis of the mission and objectives, do a SWOT analysis through interviews with administration or using your own expertise. What major changes are indicated? How will they affect the way courses will be taught? What training might be necessary to meet these changes?

5. Identify (through personal knowledge or research) an organization that uses HRD as a part of its competitive strategy. What role does HRD play in that strategy, and how is HRD involved in implementing the strategy?

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Questions for Review 1. What factors might inhibit HRD managers from developing a strategic planning approach to training?

How might these factors be overcome?

2. Think of possible strategic training alternatives other than those described in the text. Under what conditions would these be important in developing a training strategy?

3. Why do training professionals need OD competencies, and why do OD professionals need trainer competencies?

4. What is the relationship between competitive strategy, external environment, and internal strategies?

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Three Learning, Motivation, and Performance

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Learning Objectives After reading this chapter, you should be able to:

Explain the value and importance of understanding theory.

Identify the major factors that determine human performance and their relevance to training.

Describe how motivation and self-ef�icacy relate to the effectiveness of training.

Describe the cognitive and behavioral approaches to learning and their contradictory implications for instructional practices.

Describe how social learning theory integrates cognitive and behaviorist perspectives.

Describe how the processes and components of social learning theory relate to training.

Describe the causes of resistance to learning.

Explain the effect of group dynamics on learning and the transfer of training.

Explain why different people need different training methods to learn the same things.

Identify the characteristics of training design that motivate learning and accommodate trainee differences.

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3.1 Case: The Wilderness Training Lab Claudia, a successful 33-year-old corporate marketing executive, found herself in the mountains preparing to climb a rope ladder attached to a tree. When she reached the top of the ladder, she would fall off backward. It wouldn’t be an accident. No, she wasn’t suicidal or deranged. She was participating in an executive development program called Wilderness Training Lab.

Back at the corporate of�ice she was known as an independent, smart, and tenacious businesswoman. She quickly moved up the corporate ladder from product research assistant to brand manager. Claudia had a reputation for micromanaging her subordinates and for being a loner. When asked about these issues, Claudia replied, “When I was in college, I had a lot of group projects. At �irst I went along with group decisions and trusted others to do a good job. Even though I felt anxious about putting my grade in the hands of someone else, it seemed to be a good way to get along in the group. Those projects received mediocre grades, and I’m only satis�ied with being the best. Then I started to take over the leadership of every group I was in. I developed the plan, decided who would do what, determined the timelines, and always took on the most dif�icult and complex parts myself, all the time making sure the others were doing what they were assigned. From then on my group projects always got an ‘A.’ I carried those lessons with me into the workplace and I’ve had good success here, too. Maybe it rubs some people the wrong way, but it works for me. The only trouble I’m having is keeping up with all my projects. Some of the other brand managers want to work with me on joint projects, but I do not have time. Besides, they probably just want me to do their work for them or steal my ideas. The VP of marketing will be retiring soon and only one of the seven brand managers will get that job. What’s in it for me if I collaborate with them? Let each of us sink or swim on our own merits.”

A few months ago, the VP of marketing, Sandy Cines, discussed career plans with Claudia. Sandy had always praised and encouraged Claudia’s work, but this time he was a little reserved. He suggested, in rather strong terms, that she attend an executive development “wilderness” program. Claudia hesitated because of her workload and upcoming deadlines. Sandy said, “Well, I’ll leave the decision up to you. The director of training and I have looked at your strengths and what you’ll need for the next level as an executive. Technically you’re very strong, but more important at the next level is building good interpersonal relationships. The training director recommended this program for you, but, as I said, I’ll leave the decision up to you.” Claudia wondered what he thought was wrong with her interpersonal relationships. She had great relationships with customers and outside vendors, and in her personal life. Relationships with her subordinates and peers needed to be different. She needed to be �irmer and less �lexible with them, did she not? She did not think she had bad relationships with her subordinates or peers. They never complained to her. However, Claudia decided it was pretty clear that Sandy wanted her to attend the wilderness program.

She found a diverse group of men and women executives from all over North America when she arrived for the training. Many con�ided that their organizations had sent them to “learn how to be more effective in groups.” Most of them indicated they were interested and eager but a little nervous about what was expected of them. They soon found out. They were divided into groups of 10 and taken out on the “course.”

The �irst training exercise was climbing the “trust ladder.” Doug, the program director, explained that the group members would have to rely on each other quite a bit during the coming week. To demonstrate that the group could be trusted, each person was to climb to the top of the ladder and fall backward into the group, which would catch the person in the proper manner. Doug showed them how. After everyone had completed the exercise, they discussed risk taking, building and trusting one’s support systems, being part of a support system, and communicating one’s needs. Then came more challenging exercises, such as building and using rope bridges to cross a stream, white-water rafting, and—the most physically challenging of all—scaling a four- meter wall. The front of the wall was sheer and smooth. A platform was on the other side, on which two people could stand at about waist level with the top of the wall and from which extended a ladder to the ground.

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Everyone had to scale the wall, and no one could stand on the platform until he or she had scaled the wall. It was a timed event, and the groups were in competition with one another. The �irst thing a group had to do was develop a plan. Strong and tall people were needed to boost the others to a point where they could pull themselves over. Some stood on the platform and helped those who were not strong enough to pull themselves over. It was clear that the �irst people over also had to be strong. Another problem was the last person over. Everyone, except the last pair, would have “spotters” in case of a fall. Also, the last person could not be boosted to the top. Someone would have to act as a human rope, hanging down from the top so that the last person could climb up the person and over the wall. Therefore, the last person would have to be strong enough to boost the second-to-last person up, but light enough to climb over the human rope. To determine the order, the group members needed to share with one another their strengths and weaknesses. Claudia wanted to be the last person so that she could make sure everyone was doing what they were supposed to, and also because, as the last person over the wall, she would represent the group’s successful completion of this exercise. Two of the strongest men in the group confessed to having injuries that would hamper their performance. Claudia realized that her tennis elbow would be a great liability. When it came to her turn to discuss her strengths and weaknesses, she was honest about her injury and indicated that she would �it best somewhere in the middle where many people could help her.

When Claudia’s turn to climb came, she called out to those on top what to expect—where she couldn’t put much strain and how she would indicate that someone was pulling too hard. Then she was being pushed up with spotters all around her, and the next thing she knew she was over the wall.

Later, when the members discussed the event, Claudia asked what impact her limitations had caused in the group. Those who had been pullers replied, “None.” They said they knew what to do because she had told them about her problem ahead of time.

While packing to go home, Claudia thought about how much she had learned about herself and her relationship to other people, especially at work. She recognized that she generally failed to trust others to do their part and so she was not as effective as she would like to be. Her success came at a high price because of the extra workload she imposed on herself. In addition, she wondered, “What is the price my subordinates pay? How have my actions affected their attitudes and performance? Do I need to be so competitive with my peers? Is that really in the company’s best interest? Is it in my best interest?” She knew she would have a lot to think about on the trip home.

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3.2 A Few Words about Theory Theories are speculative road maps for how things work. In fact, most of us develop our own theories to explain how the world around us works. The child yells, “I want an ice cream cone.” He is told, “No, not until you ask properly.” After several such incidents, the child begins to see that when he says “please,” he is more successful than when he says “gimme” or “I want.” The child develops a theory of how to get things he wants; he must always say “please.” “Good” theories assemble a number of facts, show the relationship among those facts, and develop a logical rationale for what is likely to be true, given those facts. From theory, predictions or hypotheses can be generated and tested. If the tests show that the predictions are correct, the theory is supported. If the new facts are inconsistent with the predictions, the theory is revised or discarded. Suppose the child in the previous situation takes his theory to the extreme. When he says “please” but is denied his request, he continues to badger the person, saying “pleeeease, pleeease.” If he soon �inds that this approach does not work, he might revise the theory. The new theory says: “Please” works more often than not, but if you have to say it over and over, it does not work. In fact, it makes the person annoyed. This process of developing, testing, and reformulating a theory is the basis of science. It is how new knowledge is created. A good theory is also practical because it

explains facts as simply as possible,

predicts future events, and

provides information on what can be done to prevent undesirable things from happening.

A theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_001) is an abstraction that allows us to make sense out of a large number of facts related to an issue. Effective training practices are developed from theories and theoretical constructs that describe how learning occurs and what motivates people. This chapter is about theory, so it is necessarily somewhat abstract. Unfortunately, some people may see little value in wading through the complex logic and rationale of theories. It is easier to follow a set of instructions like a recipe. But, in training, as in business, a single recipe will not work. Recipes require standardized ingredients—businesses do not have standardized ingredients. Each organization is unique, with different missions, strategies, environments, technologies, and people. The interaction of these elements creates a different “chemistry” in each organization, thus making a “one best way for everyone” approach ineffective. Theories provide the guidelines, principles, and predictions that allow organizations to create the right recipe for their situation. Successful people in business pay attention to theory.

Firms in all industries from manufacturing to telecommunications, from energy production to health care (e.g., Ford, 3M, Microsoft, Motorola, Toshiba, Toyota, and Xerox), jumped ahead of the competition because they understood and applied theories. Some of these theories concern the product; others concern how the product is made, and still others how the �irm is managed. Rather than copying others, these companies understood the underlying theories related to what they were trying to do and applied those theories to meeting their goals. As the quality guru W. E. Deming indicated, experience teaches nothing without theory. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_001) He warned that unless you understand the theory behind someone’s success, copying can lead to chaos. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_002) A survey of Fortune 1000 companies engaged in programs to improve quality (e.g., total quality management, ISO 9000) and involve employees in decision making supports this view. The companies that applied the underlying models and theories correctly were getting the best results; those that simply put programs into place were getting the worst results. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_003)

Consider pay systems. Suppose a company pays its employees on the basis of how much they produce (i.e., a piece-rate system). The company is successful and the employees make a high wage. You decide to institute the

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piece-rate system in your company. Will it work? It might, but it might not. Its success will depend on the total reward system, what the company is trying to accomplish, and what the employees value. For example, employees might turn out a high volume of the product but at the cost of many problems with quality. They might produce more than can be sold. Piece-rate systems can create a “norm” in the work group that prohibits them from producing more than a speci�ied amount (to avoid increases in the product/ money ratio or to protect slower workers). In other words, the differences in the people and work environments affect the success of the piece-rate system.

As a manager, your understanding of motivational theory allows you to improve employee performance levels by applying the principles of motivation to your �irm’s unique circumstances. The same is true with training. Whether one company’s training program will work in another’s will depend on the needs of each company, its employees, and the training system used. Copying without understanding is like taking someone else’s prescription drugs. Even though they might have made someone else better, they could kill you.

What theories are important to the success of the training enterprise? If trainees do not learn, then training has failed, so theories of learning are certainly important. If trainees learn but do not try to transfer the learning to the job, then training has failed. Add theories of motivation to the list. If the trainees learn and try to transfer the learning to the job site, but obstacles in their work environment prevent them from making the transfer, then again training has failed. It failed because the changes in the work environment that needed to support the desired behavior were not considered. Thus, to design and implement effective training programs, you need to understand how people learn, what motivates learning and performance, and how the learning and work environment affect motivation and performance. This chapter focuses on these topics. The theories, models, and concepts discussed here serve as a foundation for the rest of the book. We will refer to these theories and their implications for training throughout the text because they are related to each phase of the training process.

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3.3 Understanding Motivation and Performance Your job performance and your behavior in general are a function of what you know, what you are able to do, and what you believe (knowledge, skills, and attitudes [KSAs]). If you do not have the requisite KSAs, you cannot perform. However, additional factors are important in determining your performance. Figure 3-1 depicts a general performance model (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_002) . This model indicates that a person’s performance (P) depends on the interaction of motivation (M), KSAs, and environment (E). Motivation arises from your needs and beliefs about how best to satisfy those needs. Both motivation and KSAs are part of your memory and thinking systems (i.e., cognitive structure (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_003) ). Environment (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_004) refers to the physical surroundings in which performance must occur, including barriers and aids to performance. Environment also includes the objects and events (cues) that you might see as indicating that your performance will be rewarded or punished.

Figure 3-1 Factors Determining Human Performance

Think back to the wilderness training case. Which of Claudia’s KSAs allowed her to reach her current position? Recall that her boss felt that she lacked the interpersonal skills necessary for developing good relationships. Did she lack these skills or was she not motivated to use them? Apparently, she had the skills, because she was able to develop good relationships with others with whom she was not directly working. The training director probably understood this, because he suggested the wilderness training rather than an interpersonal skill-building workshop. The wilderness training did not teach people how to develop good interpersonal relationships as much as it broke down barriers that prevented those relationships from developing. The program worked on the motivation and attitudes of the trainees. What barriers in Claudia’s work environment might keep her from developing these relationships? How about the upcoming retirement of

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the VP and that open position? What criteria could be used to evaluate managers that would encourage them to develop positive relationships with peers and subordinates?

Each of the factors M, KSA, and E in Figure 3-1 can in�luence performance, but the combination of these factors determines the person’s performance. The weakest factor, then, limits the likelihood of engaging in any activity. For instance, no matter how knowledgeable or skilled you are, if you are not motivated to perform the activity—or worse, are motivated to not perform it—then you will not. If the environment does not support the activity or blocks it, then it does not matter how motivated or knowledgeable you are, you will not do it. For example, if necessary tools are not working or equipment is missing, you won’t attempt the activity. Likewise, if the environment is sending signals that your performance will be punished, you won’t perform. In Claudia’s case, she seemed to want to stay at work and not attend the training. However, her boss gave strong indications that staying would be viewed negatively. Her environment changed, signaling that old ways of performing would not be rewarded and new ways would.

The model in Figure 3-1 is important for determining employee training needs. It helps us understand whether poor job performance is a result of KSAs or other factors. It is also important in the design of training. When putting together the learning modules and training methods, the trainer must consider how they will affect the trainees’ motivation to learn. Similarly, when selecting the training facility and materials, we must consider how they will interact with trainee motivation. When we ask trainees to use their new knowledge and skills back on the job, we must make sure that the environment is supportive of this new way of performing. A deeper understanding of these three determinants of performance will increase your ability to design and implement effective training programs. First, we look at motivation, presenting the most prominent theories and clarifying their relationship to the training enterprise.

Motivation: Why Do They Act Like That? Motivation is part of a person’s cognitive structure and is not directly observable. Thus, it is typically de�ined in terms of its effects on behavior, which are observable. Most of the scienti�ic literature de�ines motivation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_028) as the direction, persistence, and amount of effort expended by an individual to achieve a speci�ied outcome. In other words, the following factors re�lect a person’s motivation:

What need(s) the person is trying to satisfy

What types of activities the person engages in to satisfy the need

How long the person engages in the activity

How hard the person works at the activity

Go back to Claudia’s situation. What need is she trying to satisfy: the growth need or the need to achieve and get ahead in the company? To answer this, look at the types of activities she is involved in. She takes on extra projects, volunteers to work on task forces, works late, and so forth. How long has she been doing it? For about two years. How hard does she work at it? Well, it seems pretty hard: She works 12-hour days and often goes in on Saturday.

Motivation is goal-directed and derived from both personal needs and the decision processes used to satisfy those needs. Separate theories evolved to explain the relationship between needs and motivation, and between decision processes and motivation. Needs theories attempt to describe the types of needs people have, their relative importance, and how they are related to one another. Process theories attempt to describe and explain how a person’s needs are translated into actions to satisfy the needs.

Needs Theory

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Our needs are the basis of our motivation and the reason for almost all of our activity. Understanding a person’s needs helps you understand his behavior. From Maslow’s early work, (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_004) Clayton Alderfer developed a needs theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_006) of motivation called ERG theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_007) . (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_005) The initials ERG represent the three basic needs of the theory: existence, relatedness, and growth. Existence needs (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_008) correspond to Maslow’s lower-order physiological and security needs. They are the immediate needs required to sustain life— needs for food, shelter, and the like—and the need for some security in the future for a safe and healthy life. Relatedness needs (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_009) re�lect people’s need to be valued and accepted by others. Interpersonal relationships and group membership (work, family, friends, etc.) act to satisfy these needs. Growth needs (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_010) include feelings of self-worth and competency and achieving our potential. Recognition, accomplishment, challenging opportunities, and a feeling of ful�illment are outcomes that can satisfy these needs. Even though some disagreement exists in the scienti�ic community about the relationships among these needs and their relative importance at any given point in life, few dispute the idea that these needs exist for everyone.

People work to satisfy their needs. Understanding the types and strengths of employee needs is important to the training process. It can help identify some of the causes of poor performance and therefore determine training needs. Consider the employee who has strong relatedness needs but whose job is structured so that he must work alone most of the time. He might be unable to complete the required quality and quantity of work because he spends too much time socializing with others in the workplace. Additional technical KSAs will do little to improve his job performance. Performance improvement would more likely result from some other type of training (perhaps time management) or some nontraining intervention (such as job redesign or counseling).

Understanding needs is also important in designing training programs and facilities. Trainers need to make sure that the environment and training methods—that is, how the training is conducted and where it takes place —meet the trainee’s physical, relationship, and growth needs. We discuss these issues in depth in the chapters covering training design, development, and implementation. Think back to the wilderness training case to get a sense of how training methods, materials, and environment in�luence trainee motivation.

Although she was motivated to attend the training because of her boss’s pressure, was Claudia motivated to learn when she �irst arrived, or was she skeptical about the value of the training? What if she had attended a series of lectures on the importance of developing strong interpersonal relationships instead of the outdoor group experiences? Would she have been as motivated to absorb the lessons and apply them to her work? How strong do you think Claudia’s relatedness needs were? How effective would the training be if it focused on showing her how changing her behavior would result in increased acceptance by her peers? It seems apparent that Claudia did have high growth needs. The outdoor training presented her with a series of physical and psychological challenges, �itting in with her growth needs and motivating her to become an involved participant in the training.

The few empirical studies conducted on this topic tend to support Alderfer’s notion that people can experience needs in all three areas simultaneously. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_006) The relative satisfaction level in each area determines the importance of the needs. Unsatis�ied needs motivate us, and motivation decreases as needs in an area are satis�ied. However, needs in these three basic areas tend to renew themselves; they can also expand. Although you might have a good job that provides you with food, shelter, and security, you might start to feel the need for better food, a larger and more comfortable home, a larger savings

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account, or an investment portfolio. Similarly, even though your relationships with family, friends, and coworkers may at �irst satisfy your relatedness needs, you might begin to feel that you would like the relationships to be better or closer, or that you want to develop additional relationships.

Sometimes our needs con�lict with one another, or one type of need might become more important than the others. Then we feel we must choose one over the other, which is what happened with Claudia. We cannot be sure how strong her relatedness needs are, but we do know that she saw them as con�licting with her ability to satisfy her growth needs at work. The wilderness training was designed to satisfy the trainees’ needs for growth and relationships at the same time. Step by step, the training demonstrated how building strong interpersonal relationships could not only satisfy relationship needs, but also make greater accomplishments possible.

This example illustrates a central point about motivating trainees to learn. The best training incorporates opportunities to satisfy all three categories of needs. The training facility and accommodations address, in part, existence needs. How much trainees learn is affected by the trainees’ physical comfort, level of hunger, and so on. Demonstrating how the training will improve the trainee’s competencies and, in turn, increase job security and ful�ill existence needs will also motivate the trainee. Building a network of positive relationships among trainees and between trainees and the trainer will address relatedness needs. Using methods that provide challenging experiences that lead to the attainment of the target KSAs will address growth needs. By having training address all three types of needs in some way, you can be assured that all trainees will �ind at least one need that can be satis�ied. This will go a long way toward motivating all trainees, because you offer something for everyone. Needs theory leads to implications for the training process even after completion of the training. Trainers must make sure that trainees can see how learning ful�ills their needs. In Claudia’s case, her boss provided some of that linkage when he told her how important relationship building is to her current and future job success (i.e., security needs). What could the trainers at the Wilderness Training Lab do to create these links? We discuss this issue more in the next section, because these links are the focus of the process theories.

Process Theories Needs are only one part of the motivation equation. Deciding how to go about satisfying those needs is the other part. Process theories (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_011) of motivation describe how a person’s needs translate into action. Although many types of process theories exist, we will focus on the three with the most direct implications for training: classical conditioning, reinforcement theory, and expectancy theory.

Classical Conditioning Classical conditioning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_012) is the association of a generalized response to some signal in the environment. It typically involves learning to emit a nonvoluntary response to some signal that in the past did not produce that response. For example, when an optometrist examines your eyes, she may put you in front of a machine that blows a puff of air into your eyes. This puff of air causes you to blink your eyes. If a red light came on just before the puff of air, you would probably learn to associate the puff of air with the red light and begin blinking whenever the red light comes on. At that point, you would have learned to blink (generalized response) in response to the red light (signal).

The most widely known example of this type of learning involves Pavlov’s dogs. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_007) Pavlov was not studying learning; he was examining the physiology of digestion by measuring the amount of salivation produced by various substances placed on the tongues of dogs. As the story goes, Pavlov observed that the dogs began to salivate on his entering the laboratory, thus playing havoc with his desire to determine the amount of saliva produced by various substances. He speculated that over time his entrance was followed so often by substances placed on the dogs’ tongues that the dogs learned to salivate on his entrance.

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Table 3-1 shows how the classical conditioning process works. Step 1 re�lects the state of affairs before conditioning takes place. Certain factors in the environment (unconditioned stimuli) produce automatic responses (unconditioned responses) in animals and people. If we place an unconditioned stimulus such as meat powder on a dog’s tongue, an unconditioned response would be the dog’s salivation. That is, the dog need not be trained (conditioned) to salivate when meat powder is put on its tongue. However, this salivation response does not occur with every stimulus that might be in the dog’s environment, such as a buzzer. If, however, you sounded that buzzer just before putting meat powder on the dog’s tongue, over a number of trials the buzzer would become a conditioned stimulus. The dog is learning (being conditioned) to associate the buzzer with the meat powder. However, you are still putting meat powder on the dog’s tongue, so the salivation is really a response to the meat powder and remains an unconditioned response. This situation is re�lected in step 2 of Table 3-1. In step 3, you stop putting meat powder on the dog’s tongue after sounding the buzzer. If the dog salivates at the buzzer, you have created a conditioned response (salivation) to a conditioned stimulus (the buzzer). Continually sounding the buzzer without offering the meat powder will extinguish (remove) this response. Over time, the conditioned response gradually disappears. Through conditioning, a response to one stimulus can be transferred to another, unrelated stimulus.

Table 3-1 Classical Conditioning Process

Step 1

Unconditioned stimulus (Meat powder) → Unconditioned response (Salivation)

Step 2

Conditioned stimulus paired with unconditioned stimulus (Buzzer followed closely in time, over many trials, by meat powder)

→ Unconditioned response (Salivation)

Step 3

Conditioned stimulus (Buzzer alone) → Conditioned response (Salivation)

Classical conditioning occurs frequently in the workplace, though it typically receives little attention. The noon whistle blows at the factory, and the worker’s digestive juices begin to �low. Sparks �ly from the welding machine and your eyes blink, even though you are wearing goggles. As you will see later, this type of learning can affect the learning environment.

Reinforcement Theory Reinforcement theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_013) is relatively simple on the surface but can be dif�icult to apply. It does not provide all the answers for how needs are translated into action, but its major points are essential for understanding human behavior. The foundation for reinforcement theory comes from the work of E. L. Thorndike. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_008) Thorndike’s law of effect (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_014) states that behavior followed by satisfying experiences tends to be repeated, and behavior followed by annoyance or dissatisfaction tends to be avoided. B. F. Skinner used this principle in developing the operant conditioning model and reinforcement theory. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_009)

The basic components of learning in operant conditioning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_015) are illustrated in Figure 3-2. A person is faced with an object or event in the environment (stimulus) and behaves in a certain

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way (response). That behavior results in an outcome (consequence) to the individual that is positive or negative. In the illustration, the man has seen a book of great interest (environmental stimulus) while on the way to work. He purchases the book and reads it (response) while continuing to walk to work. You can imagine the consequence. The environment provides stimuli that elicit behaviors and consequences that reinforce or punish them.

Figure 3-2 Behaviorist Model of Learning

In similar situations, the consequences of past behavior affect future behavior. How will the man in Figure 3- 2 respond to books while walking in the near future? Operant learning theory says that due to the negative consequence of falling into the hole, the man will learn to avoid reading and walking at the same time. A person’s motivation (i.e., direction, magnitude, and persistence of behavior), then, is a function of her reinforcement history. Unfortunately, reinforcement theory provides no explanation of the processes involved in storing, retrieving, or using the lessons of past reinforcement. The model leaves us wondering how future behavior becomes in�luenced by previous reinforcement history. Nevertheless, the theory does convincingly predict the various effects on future behavior caused by the consequences of past behavior.

Skinner identi�ied four types of consequences that can result from behavior:

1. Positive reinforcement

2. Negative reinforcement

3. Punishment

4. Extinction

When behavior results in either positive or negative reinforcement, the likelihood that the behavior will occur in similar future circumstances is increased. Positive reinforcement (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_016) occurs when your behavior results in something desirable happening to you—either tangible (such as receiving money),

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psychological (such as feeling pleasure), or some combination of the two. Negative reinforcement (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_017) occurs when your behavior results in removing something you �ind annoying, frustrating, or unpleasant. This “good” outcome increases your likelihood of repeating the behavior. For example, if you have a headache, take an aspirin, and the headache goes away, the “aspirin-taking response” is negatively reinforced. Nothing is inherently desirable about taking the aspirin; its reinforcing power comes from its ability to remove the pain. Either the environment or the person can provide reinforcement. For example, when a person receives his pay, the environment provides positive reinforcement (pay). When a person feels a sense of pride and accomplishment after completing a task, the person is positively reinforcing himself.

Your behavior is punished when it results in something undesirable happening to you. Punishment (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_018) decreases the likelihood of the response occurring in the future. Like reinforcement, punishment can be tangible, psychological, or both and can come from the environment or be self-administered. In Figure 3-2, the environment provides the punishment. However, when we do things that violate our personal values and beliefs, and therefore experience negative feelings, we are self-punishing that behavior. Punishment exists when you receive something unpleasant or when you lose something desirable. The latter form of punishment is called extinction (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_019) . For example, you might buy books by a certain author because of the positive feelings you experience as you read them. However, while reading the last two books by this author, you did not experience those positive feelings. Therefore you stop buying this author’s books. When a person’s behavior (like buying and reading the books) no longer produces the desired outcomes, the behavior is less likely to occur in the future. Figure 3-3 depicts the various types of behavioral consequences.

Figure 3-3 Types of Consequences That May Follow Behavior

A few examples here should clear up any misunderstandings or confusion created by these de�initions. First, think back to the Wilderness Training Lab case. What kind of reinforcement history did Claudia experience from working in groups? Her �irst group experiences in college resulted in the negative outcomes (for her) of mediocre grades. Because her cooperative behavior in groups was punished, she stopped it. When she changed her behavior to become more directive—monitoring and doing more of the important work—two consequences resulted: (1) she was positively reinforced by good grades and (2) she avoided the negative feelings of anxiety about the other group members not doing their assignments well and the resulting mediocre grades. Her new group behavior was both positively and negatively reinforced over a number of years. It is no wonder, then, that she continued to work this way in groups. Is it possible that Claudia avoided working in groups with her peers because she couldn’t control those groups in the same way she could her subordinates? The training she received provided her with new group situations in which she was positively reinforced (e.g.,

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recognition, accomplishment) for using a new set of group behaviors. This new set of outcomes seems to have changed her beliefs and attitudes about how to work effectively in groups.

In another example, after working for a few hours, Jon, a machinist, suddenly hears a loud unpleasant screeching noise coming from the exhaust fans near his work area. He �inds the electrical switch and turns the fans off; he later switches them on again, and they work for the rest of the day. The same thing happens over the next two days. On the fourth day, when he takes his break, he turns the fans off before the noise begins. When he returns from his break, he turns them on, and they operate normally for the rest of the day. This behavior becomes a daily habit with Jon. Jon does not know that plant maintenance repaired the fan the evening before he began his “turning it off at the break” behavior. Jon maintained his behavior because it was negatively reinforcing. By “giving the fans a rest,” he avoided the loud, unpleasant noise. As this worked every time, it was self-reinforcing. This is how superstitious behaviors develop.

Reinforcement versus Punishment Punishment can eliminate undesirable behavior in the workplace. However, several problems make it undesirable as a management or training tool.

It does not motivate people to do things, only not to do things. It does not indicate what the desired behavior is, only what is not desired.

If the undesired behavior is punished only sometimes, people will learn the situations in which they can get away with it. The saying “While the cat’s away, the mice will play” neatly captures one problem with this technique; punishment requires constant vigilance on the part of a supervisor and encourages employee efforts to “beat the system.”

If a person’s undesired behavior is rewarding, the punishment must be severe enough to offset the behavior’s reinforcing properties. Escalating negative outcomes to employees can raise ethical, moral, and commonsense objections.

Someone must do the punishing. This person becomes someone to be avoided. Supervisors avoided by subordinates experience leadership problems.

Positive and negative reinforcement are better tools for motivating and especially for training employees. Negative reinforcement can cause the desired behavior to become self-reinforcing, like Jon’s turning off the fans. When the person continually performs the desired behavior, negative outcomes are avoided. If the desired behavior is then also positively reinforced, the person not only avoids the negative outcome but also receives a positive outcome. As with Claudia in the opening case, the result is a strong maintenance of the behavior.

With reinforcement, the person doing the reinforcing does not always need to be present for the desired behavior to occur. The employee actively seeks to make the reinforcing agent (e.g., supervisor or trainer) aware of her behavior. When punishment is used as the motivational or learning mechanism, the employee attempts to hide behavior so as to avoid the consequences. Obviously, a trainer or supervisor’s job is much easier when employees are attempting to communicate what they are doing rather than hiding it.

Thus, either positive or negative reinforcement is preferred over punishment as a strategy for motivating learning and behavior change. Used in combination, positive and negative reinforcement appear more effective than either used alone. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_010) For those interested in �inding out more about how to implement positive, humanistic, and effective work environments, we would encourage you to read Dick Grote’s Discipline Without Punishment. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_011)

Reinforcement theory suggests that any training must be concerned not only with teaching the KSAs but also with the consequences that are attached to the following:

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the learning process,

the old way of doing the job, and

the new way of doing the job.

These factors play a key role in determining how much is learned and how much is actually used back on the job.

As noted earlier, many unanswered questions arise when using reinforcement theory to describe the motivational process. Expectancy theory, however, provides some additional explanation and leads to many more implications for training.

Expectancy Theory In 1964, Victor Vroom published a theory of work motivation called expectancy theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_020) . (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_012) This theory describes the cognitive processes involved in deciding the best course of action for achieving our goals (i.e., satisfying our needs). A cognitive process (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_021) is a mental activity such as information storage, retrieval, or use. Thinking and decision making are cognitive processes. In its most basic form, expectancy theory proposes that a person’s motivation can be explained by the relationship among three conceptually distinct elements:

1. The level of success expected by the individual (e.g., how well she will be able to do what she sets out to do), which is termed Expectancy 1.

2. The individual’s beliefs about what the outcomes will be if she is successful. The expected outcomes and their likelihood of occurrence make up Expectancy 2.

3. The individual’s feelings about the various outcomes’ positive or negative value. An outcome’s subjective value is referred to as its valence (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_022) .

In combination, these elements determine the individual’s motivation (i.e., effort) to engage in a particular course of action. When situations allow different courses of action, as most do, the one with the highest motivation level is chosen. The motivation level for a particular course of action can be calculated mathematically with the following formula:

Although this formula is useful for those conducting research on motivation, it is not particularly useful in the day-to-day activities of most people. It does, however, present some important implications for training and learning, which we discuss shortly.

To gain a better understanding of the expectancy theory framework, let’s go back to Claudia at the point at which she was trying to decide whether to attend the executive development seminar as suggested by her boss. Today is the last day she can register for the seminar, which starts in two weeks. She postponed the decision as long as possible and now must decide. She feels con�ident about her ability to complete this training successfully, but she holds some doubts about whether it will teach her anything useful about running her marketing operation or working more effectively in a group. She knows that during her week of training, the marketing strategies for �ive important accounts will arrive on her desk, and she will need to review and �inalize them before forwarding them to top management. They are due on the Wednesday following training. In

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addition, her normal work will continue to pile up. Claudia faces the choice between incompatible courses of action. Her cognitive processes, in expectancy theory terms, are illustrated in Figure 3-4.

Figure 3-4 Illustration of Expectancy Theory

Examining Claudia’s situation in terms of expectancy theory, we see that her expectations of success (Expectancy 1) are high for both behaviors. The expectancy of 1.0 means that she is 100 percent sure that she would successfully be able to complete either course of action. The Expectancy 2 links re�lect the outcomes that Claudia anticipates if she successfully completes the seminar or stays at the of�ice and completes her workload. If she turns down the training and stays on the job, she believes that there is a 50 percent chance her boss will see her skills as inadequate. It would be higher, but she believes that if she can do a superior job on these strategies, he will not think that those relationship skills are so important. She believes that it’s 90 percent likely that she will have feelings of pride and accomplishment for getting all her work completed on time. However, if she turns down the training, she believes that there is only a 30 percent chance that her boss will recommend her for promotion.

Conversely, if she goes to the training, she believes that the likelihood is 60 percent that her boss will evaluate her as having a more complete set of managerial skills. However, she will fall behind in her work, and it is a certainty (1.0) that she will feel harried, overloaded, and depressed. Yet she sees the chances of being recommended for a promotion increasing to 60 percent if she goes to training. As the valences in Figure 3-4 show, she values her boss’s recommendation for promotion the most. She views having her boss evaluate her skills as being inadequate and the feelings associated with being behind in her work as the least desirable of the outcomes.

How would you use the formula to calculate Claudia’s motivation to stay on the job rather than go to training? By multiplying each Expectancy 2 by its respective outcome valence and summing the values, you would get 9.8.

Then you would multiply that total by Expectancy 1, which is 1.0, and you would arrive at a force of 9.8 for nonattendance at the seminar.

Using the same procedure for the alternative goal—attending the seminar—you would arrive at a force of 11.2. Thus, for Claudia, the motivation to stay at work is less than the motivation to attend the seminar.

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Even though the actual values of expectancies and valences are interesting from a scienti�ic perspective, from a practical standpoint it is the relationships among the elements of the model that are useful. This example illustrates the cognitive processes that link a person’s goals, possible courses of action, and likely outcomes. These connections determine the person’s motivation and are what is missing from the reinforcement theory. Of course, we simpli�ied the situation considerably from what Claudia would actually face in the real work setting. She had many other alternatives. She could delegate someone to cover most of the normal work coming across her desk (though she was not especially comfortable with delegating). She could arrange for the marketing strategies to be sent to her at the training facility and work on them at night, after training, and over the weekend. Each of these alternatives would present its own expected outcomes and associated valences.

Faced with the situation Claudia faced, what would you do? It is unlikely that you would place the same value (valence) on the outcomes or give them the same likelihood of occurring. You might identify more or fewer outcomes. One of the things that make this theory so useful is that it takes into account the fact that people view the world differently and are motivated by different things. The lesson from expectancy theory is that you need to know what the person expects and what they value in order to understand their motivation.

Few people would consciously go through the formal math or mapping of expectancy theory, but it is interesting to note that most training programs that teach decision making use a model similar to this one. More typically, we go through these processes unconsciously and in a less systematic fashion. We choose a particular way of behaving because of our expectations about the costs and bene�its of that action. Relationships between our past behavior and its consequences are combined with current information to make inferences about the consequences of our future behavior. Some implications for training become rather obvious here.

First, to be willing to try, a person must expect that there is a reasonable chance of success. Expectancy 1 exerts the most in�luence on our behavior because we do not waste our time trying to do things we believe we cannot do. Sometimes this belief makes people reluctant to go to training, so trainers must demonstrate that success is likely for the participants. Second, and related to needs and reinforcement theory, trainers must make sure that the right outcomes are attached to the successful completion of training. Trainees should be able to see clear connections between the content of training and important organizational and personal outcomes. Third, the training outcomes must be made as desirable as possible for the trainees rather than just for the organization, the supervisor, or the trainer.

Self-Ef�icacy and Motivation Feelings about our own competency are re�lected in the concept of self-ef�icacy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_023) , which is one of the better-researched constructs related to motivation. High self-ef�icacy is associated with a belief that we can and will perform successfully. Individuals with low self-ef�icacy are preoccupied with concerns about failure. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_013) Research supports the belief that the higher the self-ef�icacy, the better the performance. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_014) Not only is performance better, but in dif�icult situations, those with high self-ef�icacy also try harder, while those with low self-ef�icacy tend to reduce effort or give up. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_015) In a training context, research shows that those with high self-ef�icacy beliefs are more motivated to learn and are more likely to transfer that learning. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_016)

There are four main factors that combine to provide employees with an estimate of their ability to be successful:

1. Prior experience: The person’s past successes and failures and their consequences

2. Behavioral models: Successes and failures of others observed attempting the behavior

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3. Others’ feedback: The encouragement or discouragement provided by others

4. Physical and emotional state: The physical or emotional conditions the person believes will affect their ability to perform

Self-ef�icacy, therefore, is the primary factor in the person’s Expectancy 1 evaluation. The employee’s feelings of self-ef�icacy are translated into behavior. If success is expected, the employee works harder, longer, and more creatively, anticipating the positive consequences of a successful effort. If failure is expected, the employee acts to minimize the negative consequences of failure. For example, withdrawing from the activity (refusing to try) moves the person away from proven failure to simply “I did not try.” It also allows the person to say, “At least I did not put a lot of energy into it,” or make some other rationalization. The point is that the employee’s self- ef�icacy sets up the person’s behavior to ful�ill the self-ef�icacy beliefs. In expectancy theory terms, if I do not believe that I can successfully do something, I won’t exert the effort to do it; instead, I’ll do something else.

What can be done speci�ically to improve an individual’s self-ef�icacy? The supervisor can provide the employee with con�idence through persuasion. Convincing her that she is quite capable of succeeding in the training will help. Also, seeing others who are similar to the employee succeed will improve the employee’s self- ef�icacy.

Training can improve self-ef�icacy either directly or indirectly, as a by-product. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_017) If the employee experiences low self-ef�icacy regarding her abilities to perform the job, but evidence indicates that she possesses the requisite KSAs, a program of improving self-concept and con�idence is needed. When low self-ef�icacy results from a true lack of required KSAs, attaining competency in these KSAs should increase the employee’s self-ef�icacy if the training allows the trainee to demonstrate mastery on a continuous basis. In this case, the training needs to be designed so that the trainee begins with easily mastered tasks and moves to more complicated tasks after the easier components have been mastered. Trainers can also emphasize what the objectives are and the success of similar sets of trainees in the past.

Self-ef�icacy is very powerful in terms of facilitating trainee success. It seems to be a good predictor of both learning in the training environment and transfer of the behavior to the job. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_018) So determining a trainee’s self-ef�icacy before training and, if low, providing means to improve the trainee’s self- ef�icacy would seem to be a worthwhile endeavor.

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3.4 Understanding Learning Theories of learning are important in the development of training. We examine the essential elements of learning theories and identify their relationship to training. Speci�ic applications of the theories are provided in subsequent chapters.

What Is Learning? To understand the differences among learning theories, it helps to understand the dif�iculties of simply de�ining the concept of learning. Learning is not directly observable, but it is something that almost everyone says they experience. People “feel” that they have learned. It is clear from physiological evidence that learning is related to changes in the physical, neuronal structure of the brain and its related electrochemical functioning. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_019) However, how or why these electrochemical changes take place is still unknown. Learning is closely tied to memory; whatever is learned must be retained if it is to be useful. Electrochemical changes created during learning apparently create a relatively permanent change in neural functioning that becomes what is commonly termed memory. Again, relatively few de�initive answers exist about how or where learning is stored in the central nervous system.

Two De�initions of Learning Because we cannot observe learning, we must infer that it occurs by looking at its observable effects. What things, in�luenced by learning, can we observe? The answer is: the learner’s behavior. For instance, in school, tests are given to determine what has been learned. The way questions are answered is the observable behavior. In the workplace, your supervisor might look for ways you perform your job differently after training. Because learning is measured in terms of relatively permanent changes in behavior, this becomes the operational de�inition of learning for many theorists. Behaviorists in particular adopt this de�inition.

Cognitive theorists, however, insist that even though learning can be inferred from behavior, it is separate from the behavior itself. By examining the ways in which people respond to information and the ways in which different types of behavior are grouped or separated, cognitive theorists developed theories of how information is learned. For cognitive theorists, learning represents a change in the content, organization, and storage of information (see the section, Example of Cognitive Theory). The term used to refer to the mental processing of information is cognition (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_024) . For cognitive theorists, learning is de�ined as a relatively permanent change in cognition occurring as a result of experience. These theorists discuss learning in terms of mental infrastructures or schema rather than in terms of behavior. Learning is seen as the building and reorganization of schema to make sense of new information. Bruner, (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_020) Gagné, (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_021) and Piaget (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_022) are among the cognitive theorists.

Implications of Behaviorist versus Cognitive Approaches At �irst, the differences in the de�inition of learning might not seem important. It might seem to be a simple difference of whether learning is synonymous with behavior or of how information is processed, organized, and stored. However, these differences create widely different approaches to how education and training are conducted.

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One obvious and important difference is where control of learning is believed to occur. The behaviorist approach suggests that the environment controls learning. Certain external stimuli are present, the person responds to them, and certain consequences result. It is the model of learning implied in Figure 3-2 and discussed earlier as part of reinforcement theory. In the behaviorist approach, the trainer controls learning by controlling the stimuli and consequences that the learner experiences. The learner depends on the trainer to elicit the correct associations between stimulus and response. Note that this model does not include the brain or any mental activity. Skinner’s explanation of learning perhaps clari�ies why he was sometimes referred to as a radical behaviorist. He de�ined learning as “a relatively permanent change in behavior in response to a particular stimulus or set of stimuli.” (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_023) In other words, we perceive things a certain way because of the consequences of perceiving them that way. Learning occurs when new consequences are experienced.

In contrast, the cognitive approach suggests that the learner controls learning. Prospective learners come to training with their own set of goals and priorities. They possess a set of cognitive structures for understanding their environment and how it works. They even develop their own set of strategies about how to learn. The learners decide what is important to learn and go about learning by applying the strategies they developed and with which they feel comfortable. For cognitive theorists, the learner controls both what is learned and how it is learned. The trainer and the learning environment facilitate that process to a greater or lesser degree. Adoption of one approach or the other leads to implications for how training is conducted and the resulting atmosphere of the training environment. Table 3-2 lists some of the instructional implications of these two positions. For some learning situations, a behaviorist approach is better, and for others a cognitive approach works better. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_024) We discuss this issue again later in the chapter.

Table 3-2 Some Training Implications of Cognitive and Behaviorist Learning Theories

Issue Cognitive Approach Behaviorist Approach

Learner’s role Active, self-directed, self-evaluating Passive, dependent

Instructor’s role Facilitator, coordinator, and presenter Director, monitor, and evaluator

Training content

Problem or task oriented Subject oriented

Learner motivation

More internally motivated More externally motivated

Training climate Relaxed, mutually trustful, respectful, and collaborative

Formal, authority oriented, judgmental, and competitive

Instructional goals

Collaboratively developed Developed by instructor

Instructional activities

Interactive, group, project oriented, and experiential

Directive, individual, and subject oriented

Example of Cognitive Theory

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Piaget identi�ied two cognitive processes critical for learning: accommodation and assimilation. Accommodation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_025) is the process of changing our construction (“cognitive map”) of the world to correspond with our experience in it. Piaget indicated that accommodation occurs through the creation of new categories, or schemata, to accommodate experience that does not �it into existing categories. Assimilation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_026) is the incorporation of new experience into existing categories. In cognitive map terms, accommodation changes the map, whereas assimilation �ills in the detail. These two processes are most clearly evident in young children but exist in adults as well. Suppose Mike (age eight) is in the rear seat of the car with his younger brother Brandon (almost two and learning to talk) as Dad drives through some farmland. As they pass a pasture where horses are grazing, Mike points and says, “Look Brandon, horses.” Brandon responds hesitantly, “Horsies?” Mike excitedly replies, “Yes, that’s right, horsies!” Dad glances back and says, “Good work, Brandon, you now know a new word!” Brandon is pleased and repeats the word several times to himself. As they continue driving, they pass another pasture with cows grazing. Brandon yells, “Look Mike, horsies!” Mike or Dad is now faced with teaching Brandon the difference between horses and cows.

What is the learning process that took place? Brandon started out with no understanding of horse or cow. When presented with a new perceptual experience and a label, Brandon created a new cognitive category that might include the following parameters: large, four-legged, brown, moving thing with a tail. So, when Brandon saw the cows, they �it enough of the parameters that he attempted to assimilate this new experience into the category “horsies.” If Mike and Dad do a good job of teaching Brandon the differences between horses and cows, he will learn to discriminate between these two and create a separate category for cows (accommodation). What he does not know yet is that later in life he will be taught to create new categories such as mammals and species and that both horses and cows are included in some categories but not in others.

The processes of assimilation and accommodation re�lect the way we organize our experience and the meanings we attach to the world as we encounter it. Our behavior depends on how we accommodated or assimilated previous stimuli.

Integration of Cognitive and Behavioral Approaches We believe that the cognitive and behavioral approaches must be integrated to provide a full de�inition of learning. Learning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch01_018) , as we use the term throughout this text, is de�ined as a relatively permanent change in cognition resulting from experience and directly in�luencing behavior. A fairly obvious implication of this de�inition is that changes in cognition and related behavior that result from things other than experience (e.g., effects of drugs, fatigue, and the like) would not be considered learning. The de�inition also implies that changes in cognition and behavior that are short- lived have not been learned. For example, memorizing a phone number long enough to walk from the telephone directory to the phone and dial the number would not �it into our de�inition of learning. However, learning mnemonic techniques that allow you to do that would be learning, if they were retained over a relatively long period of time.

Learning, as de�ined here, is not dependent on behavior. Relatively permanent cognitive changes (new KSAs) can occur in the absence of observable behavior. However, only the learner would know whether the learning took place. For example, think of courses you took in which the material was presented in a lecture or audiovisual form. If it was effective, you changed your way of thinking about the topic or came to a deeper understanding of the material—even though you did nothing other than pay attention and think about what was presented. However, until you engage in some activity related to the topic, no one other than you would know that learning had taken place. This phenomenon could also happen with skills. Suppose you are a chef and you attend a seminar on preparing a dish. You observe the presenter enhancing the �lavor of a dish using a technique of which you had no previous knowledge. You go back to your kitchen, try the technique, and are

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successful on the �irst try. You acquired the “�lavoring” skill through observation rather than behavior. However, you might not be sure you had acquired the skill until after you engaged in the behavior. Additionally, the more you use the technique, the more permanent (i.e., resistant to forgetting) it would become. Thus, behavior is both an important measure and means of learning.

Each of these two approaches produces valuable insights about learning. Learning theories that integrate the substantiated aspects of both approaches explain learning more completely than either one alone. We discuss such a theory next.

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3.5 Social Learning Theory Social Learning Theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_025) (also known as observational or vicarious learning), includes behaviorist principles, but has an important principle that differentiates it from the purely behavioral approach. This principle, that learning can occur without any overt behavior by the learner, has been substantiated by considerable research. So, from the Social Learning Theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_028) perspective, events and consequences in the learning situation are cognitively processed and can in�luence behavior even if the learner does nothing but observe. As in reinforcement theory, the consequences of behavior (reinforcement or punishment) in�luence the likelihood of that behavior in the future, but they do so as a result of how they are perceived, interpreted, and stored in memory. Thus, a person can learn by observing the behavior of other people and the resulting consequences to those other people. This process is called observational learning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_029) (or sometimes referred to as vicarious learning). This theory contradicts the strict behaviorists, who claim that learning can occur only as a result of a person’s own behavior and its consequences. The cognitive processes that are a part of social learning theory are motivation, attention, retention, and to some extent behavioral reproduction. Figure 3-5 illustrates the relationships among these cognitive processes. The discussion that follows covers each aspect of the model.

Figure 3-5 Cognitive Processes Involved in Social Learning

Motivation Although motivation was discussed at length earlier in this chapter, it is useful to see how it �its in with social learning theory. As the model indicates, motivation both in�luences and is in�luenced by the other processes. The learner’s needs determine what things receive attention and are processed for retention. As shown in the model, social learning theory incorporates the reinforcement theory concept that the consequences of behavior affect the likelihood of future behavior. By observing someone else’s behavior, the observer can learn something about how to perform the behavior and also something about the consequences of the behavior.

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Thus, the learner’s future behavior is in�luenced by the how other people behave and the reinforcement or punishment that follows their behavior.

However, the model of learning processes illustrated in Figure 3-5 is more than just observational learning. It combines concepts from various learning theories into a comprehensive set of integrated learning processes. By examining these processes we are able to derive principles for effective training. After discussing each of the processes, we will show how they align with nine instructional principles that lead to effective training.

Attention Before we can learn, we need to focus our attention (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_030) on what is to be learned. For most of our waking hours we are in an environment that bombards us with a multitude of sights, sounds, smells and so on. However, we only notice some of all that is around us and pay attention to only part of that. The things we pay attention to are those that stand out for some reason (loud, bright, unusual, etc.) and which we believe have important consequences for us.

The chapter on training design addresses in great depth the issues related to capturing and maintaining trainee attention. However, let’s examine a few methods here to illustrate how managing trainee attention can increase the effectiveness of training. One way to garner attention is to let participants know the purpose of the training and why it has important consequences for them (the bene�its of learning and the costs of not learning). You can also get trainee attention by making key learning points stand out so that the trainees will focus attention on them. Eliminating distractions, such as electronic communication devices, keeps trainees’ attention focused on the training. Making learning exercises fun and interesting keeps attention focused on the learning topic. However, exercises that are fun but not related to the learning objectives focuses attention away from what trainees are expected to learn. Getting trainees to pay attention is just the �irst step in facilitating learning. Once you have their attention you need to help them retain the information.

Retention Once attention is focused on an object or event, the incoming information is processed for possible retention (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_031) . Some of the information will be retained, and some will be lost. The more you design your training to facilitate the retention processes, the more your trainees will learn. As Figure 3-5 shows, there are three key retention processes; symbolic coding, cognitive organization, and symbolic rehearsal. The retention process begins with symbolic coding (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_032) , which is the translation of the external world into internal symbols that are used to understand and retain the information. These symbols are then organized into the person’s existing cognitive structure by linking up with previously stored information. This “linking up” process is called cognitive organization (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_033) . It is what we previously discussed as assimilation and accommodation (putting information into already existing categories or creating brand new categories for the information). It can be facilitated in training by asking the trainees to provide examples of how the new information relates to what they already know and how it differs from what they already know. Doing this serves two purposes: It allows the trainee to code and store the information more easily, and it allows the trainer to see whether the desired associations are being made. Our earlier discussion of Brandon learning the concept “horsie” and the difference between cows and horses is a simple example of how this process works. First Brandon learned the new concept “horse” which he symbolically coded into his memory as a large animal with four legs. He created a new category (cognitive organization) which he label1ed “horsies.” Later he sees a cow which he calls a “horsie”. Let’s say dad and brother Mike tell him “No, that’s a cow.” Brandon isn’t likely to be able to understand the difference. If, when they get home, dad shows Brandon pictures of cows and horses and explains how they are different he will have facilitated Brandon’s learning. To see if Brandon really knows what distinguishes a cow from a horse dad should ask him to pick out the picture

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of the cow and show him what makes it different than the horse. It is through this question and answer cycle that dad will be able tell if Brandon really has learned to distinguish between the two. There are additional ways to facilitate retention beyond questioning and these are discussed in Chapter 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) .

To anchor the learning and increase its retention, the learner can “practice” the learned material through visualizing or imagining how the knowledge or skill will be used. This is called symbolic rehearsal (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_034) . If the focus is on skill building, the trainee imagines using the skills in different situations. This is usually fairly easy to do because a skill is generally associated with particular situations in which it is used. When the focus of learning is knowledge, it is sometimes more dif�icult to imagine how it can or will be used. For example, think back to when you were learning the multiplication tables. Most of us memorized these through constant repetition over many months, and to help us remember them we were given multiplication problems to solve. Each year, as we advanced to the next grade, we were given more multiplication problems to solve. This repetitive use of the multiplication rules allowed us to retain them. In contrast, storing information without any personal use—in other words, just memorizing—typically results in only short-term retention. Students who have ever crammed for an examination are probably familiar with this phenomenon. In the case of cramming for an exam, little time is spent trying to understand how the information can be used in the “real world” while a great deal of time is spent developing systems for memorizing the words. Once the exam is over, there is no perceived need to retain the information and it is lost. However, associating the information with its uses enhances the storage and retrieval processes, increasing long term retention. The symbolic rehearsal process is one kind of mental practice. Observing others use the knowledge or skill provides additional opportunities for symbolic rehearsal because as you watch them, you can put yourself in their place. Symbolic rehearsal also increases the ability to generalize learning to novel situations. As with the other retention processes, Chapter 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) discusses many additional ways to enhance retention through symbolic rehearsal.

Behavioral Reproduction Behavioral reproduction (�ilegloss01.xhtml#glossch03_035) is repeated practice. The more a person practices using new information, the more it is learned and retained. The effectiveness of practice depends on how the practice is designed and reinforced. This will be discussed in detail in Chapter 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) . Figure 3-5 shows the behavioral reproduction process as being both a part of the learner’s internal cognitive processes and the external environment. This is done to show that the person’s internal processes initiate the behavior (retrieving the knowledge/skill from memory and directing the body to perform) while the behavior actually occurs in, and becomes part of, the external environment.

We already spent considerable time discussing the importance of behavioral consequences. One additional point is worth making, however. If consequences are to affect behavior, the individuals must be aware of the consequences and their connection to behavior. For example, assume that a supervisor has not yet told an employee that he has recommended him for a bonus because of superior performance. Obviously, the recommendation will not in�luence the employee’s behavior until the supervisor informs him. Even when aware of a consequence, the person may misinterpret its connection to performance. The supervisor may tell the employee “I’ve recommended you for a bonus.” However, the employee may think “Well I guess my getting him coffee every morning has paid off.” Thus, for consequences to have the desired effect the person must know the outcomes and correctly connect them to the behavior that produced them. Effective training programs need to provide learners with the opportunity to practice new behaviors, but in addition need to call attention to the desirable consequences of learning and of using the learning back on the job.

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3.6 Aligning Training Design with Learning Process We have discussed various processes involved in how individuals learn and some things effective training programs should do to enhance learning. From these learning processes Gagné and his associates (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_026) have developed a sequencing of instructional events that should be designed into any training program so as to facilitate the trainee’s learning process. Table 3-3 lists these and what the effect of the event is on the trainee.

Table 3-3 Gagné–Briggs Nine Events of Instruction (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_027)

Instructional Event This Event Causes the Trainee

Gaining attention To focus on trainer and/or training materials

Informing the trainee of goal (objective)

To begin to focus on the goal

Stimulating recall of prior knowledge (learning)

To retrieve prior learning to working memory

Presenting the material To selectively perceive important parts of training

Providing learning guidance To consider how the new material �its into the trainee’s overall schema and clarify where it belongs for ease of retrieval

Eliciting the performance To do it

Providing feedback To perform more effectively by reinforcing correct responses and assisting when incorrect

Assessing performance To demonstrate what has been learned by completing some predetermined activity

Enhancing retention and transfer

To use the concept in more complex and varied ways accompanied by feedback

This Micro Theory of Instructional Design (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_036) provides nine steps (sets of events) to follow in developing training. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_028) Gagné and his associates say:

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“These events of instruction do not invariably occur in this exact order, though this is the most probable order . . . by no means are all of these events provided for every lesson. . . . Their role is to stimulate internal information processes . . . sometimes an event will be obvious to the learner and not needed . . . or provided by the learner themselves. . . . In using the checklist the designer asks, “Do these learners need support at this stage for learning this task?” (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_029)

So, one should not interpret the nine steps as applying to an entire training program that consists of multiple modules. Rather, these steps apply to each module in a training program. For example, if a training program has four modules and each module has its own learning objective, then the nine steps would apply to each module. But, perhaps not in the same order or even all of them in each module. We provide an example of how to apply the nine steps to a training module in Chapter 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) . Our purpose here is just to familiarize you with how the theory of learning is translated into practical steps for the design of training.

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3.7 Motivation to Learn We have now discussed both motivation and learning theory. Here we discuss how these integrate into a model of trainees’ motivation to learn as they enter and progress through a training program. In addition to designing training to align with learning processes, the design must also address the trainee’s motivation to learn. Motivation to learn is de�ined as the intensity and the persistence of the trainee’s learning-directed activities in relation to the training program. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_030) There is a signi�icant amount of research evidence to show that motivation to learn in�luences the outcomes of training (knowledge and skill acquisition, transfer of KSAs to the job and resulting job performance). (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_031) Thus, training professionals need to understand the factors affecting motivation to learn and how to address these in the design of training. In this chapter, we focus primarily on understanding the factors and only brie�ly touch on training design implications. We will cover the design issues more fully in Chapter 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) .

Figure 3-6 shows how various individual and organizational factors affect motivation to learn. The relationships shown in the �igure have been supported by numerous research studies. While the relationships among all the variables are much more complex than depicted, we have taken a few liberties in the interest of clarity to show how individual characteristics and the organizational context interact to in�luence the trainee’s motivation to learn. As Figure 3-6 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_032) shows, the trainee’s motivation will be determined by individual factors (self-ef�icacy, valence, anxiety, and cognitive ability) and environmental factors (climate for learning and transfer and supervisor/peer support). These are the shaded areas in the �igure. We will discuss the environmental factors �irst.

Figure 3-6 Factors Affecting Motivation to Learn and Transfer of Training

Environmental Factors and Resistance Resistance to learning occurs when the trainee’s motivation to learn is not high enough to overcome other forces acting on the trainee that discourage learning. Learning, like eating, is one of the most fundamental processes of survival, so why do trainees resist it? Trainers and managers continually complain about trainees

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who do not pay attention, are disruptive, and demonstrate a general resistance to learning new material. If learning is a basic human process, why are so many complaints of this type made?

Viewing learning as a performance outcome is the �irst step to understanding resistance to learning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_037) . Most learning is not something that happens automatically or unconsciously. It is an activity we decide to do or not do. From the performance model discussed earlier (see Figure 3-1), we know that learning is determined by a person’s motivation, KSAs, and learning environment. If the trainee doesn’t have the prerequisite KSAs or the environment doesn’t allow learning to occur, then resistance occurs. If trainees are not motivated to learn the material, they will also demonstrate various forms of resistance.

There are many organizational-environment factors that in�luence how employees enter training. We will focus on three key factors: peer support, supervisor support, and the climate for learning and transfer back to the job. These have substantial research support and are factors that can be addressed by the training design.

Peer Support Peer support is the encouragement and assistance that trainees receive from their coworkers. The effects of group dynamics (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_038) in the work unit on individual group member behavior and motivation is signi�icant and is one reason trainees might resist new learning. The power and control of the group over its members was �irst noted in the Hawthorne studies of the 1920s and 1930s. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_033) Even though members of the group were paid a piece rate, the output from members of the group was always within a certain number of units. Examination of this study revealed that the group set a standard, rewarded those who remained within the standard, and punished those who did much more or much less. Thus, the group norm of a certain number of units was generally followed.

The power of the group comes from rewards the group gives to members who follow group norms or the punishment for those who do not. These rewards or punishments can be as simple as talking to (reward) or shunning (punishment) a group member. Punishment can also be severe, such as slashing tires or physically threatening those who do not comply. Consider the following scenario. Sarah arrives at the training center early, excited to be attending a workshop on how to communicate with customers more effectively. Fellow trainees are talking among themselves, making fun of the training. One of them says, “They are going to tell us how to do our job; I bet the trainer has never even done our job, so how could he know?” Another responds, “Yeah, these workshops are put together by those who never worked in a real job, but at least we can enjoy this as a day off work.” Then one turns to Sarah and says, “Hey, I see you managed to con your boss into sending you here for a rest too—good work.” To be part of the “in group,” Sarah will have to agree and, as a result, will be much less active in the training than she would really like. This will affect the amount she learns.

Let’s say that in spite of her (and everyone else’s) lack of participation in the workshop, Sarah did learn a few skills. Now she goes back to her workplace. There she hears coworkers (peers) comment, “Well, did you enjoy your day off ? Wasn’t that training the stupidest stuff you have ever seen?” and “Can you imagine using that ’active listening’ stuff on a real customer?” With such comments, what is the likelihood that Sarah will want to try some of these new skills? Group dynamics is a powerful force that can drastically inhibit both learning and transfer of skills. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_034)

Group dynamics can also be used to support high performance. The pajama factory experiments of the late 1940s compared employees in two groups where change was necessary in how the jobs were done. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_035) In one group employees were told about the changes, and in the other the members provided input into the changes. The no-

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participation group showed a drop in productivity from the baseline, and the participation group showed an increase in productivity from the baseline. The most important factor in the difference was group norms that developed either to restrict output (no-participation group) or increase it (participation group). More recent research indicates that peer support for training is a strong predictor of the likelihood that trainees will transfer what they learned to the job. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_036) The control the work group exerts over the individual member is a double-edged sword. It is a good thing if the norms are developed in line with the organizational goals, bad if they are not. One way of developing positive norms is to allow input from the work group on decisions that will affect them. The movement toward more teams and teamwork in organizations provides such opportunities, but to ensure that the right norms are developed, these work groups need to be nurtured and made to feel that they are a valuable part of the organization. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_037)

Supervisor Support Supervisor support is also a key factor in�luencing motivation to learn and resistance to training. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_038) Supervisors are the of�icial source of rewards in most organizations. If your supervisor doesn’t think that training is worthwhile and communicates this to you, what will your reaction be? Probably you will also think that the training is not worthwhile, and your attitude walking into the training will be negative. With this predisposition, you are likely to demonstrate one or more signs of resisting the training. For this reason, we advocate engaging the trainees’ supervisor(s) early in the training design process. This allows the supervisor(s) to have input into the training and to see how the training will be of value to the work unit.

Climate for Learning and Transfer For training to be successful, both learning and the use of that learning back on the job need to be supported. If the employee doesn’t feel that learning the new material is valued by those that matter she will make little or no effort to learn. Evidence that the organization supports learning is shown in the way it creates learning opportunities and the way it rewards learning. This “learning” climate combines with the climate for “transfer” to in�luence the employee’s motivation to learn and apply that learning to the job. While a positive climate for learning and transfer includes supervisor and peer support, it includes many other things as well. It requires aligning organizational systems and procedures to support the new job behaviors and the training process in addition to removing barriers. What sorts of systems and procedures need to be aligned? We will talk more in depth about this in the next chapter on the needs analysis phase of the training model. For now, it’s suf�icient to know that organizational reward systems, job materials and equipment, and job procedures are on the list.

Individual Factors and Resistance Differences in personality and other individual characteristics are related to trainees’ motivation and ability to learn and thus are also factors in resistance to learning. We have already discussed in some depth how a person’s self-ef�icacy and the way she values the outcomes of training (“valence” in expectancy theory terms) will in�luence her motivation. The number of personality traits that in�luence a person’s motivation to learn is far greater than can be discussed here. For the most part, an understanding of these personality traits provides little practical value for training design and implementation. This is true for several reasons. In most organizations, employee personality traits are not measured, as it is too costly and impractical. Even if these traits were measured, designing a training program that addresses all the individual differences among the trainees would be too complex and costly to be practical. The same is true for developing separate training programs for sets of trainees with unique combinations of traits. However, there are some individual characteristics that are fairly easily observed and which training can be designed to address.

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Cognitive Ability refers to individual differences in information-processing capacity and the level of cognitive resources that a person can bring to bear on a problem. This is often referred to as general intelligence. It is clear that individual differences in cognitive ability relate to differences in learning. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_039) Trainees with differences in cognitive ability will respond differently to goals set for training.

Goal Setting Some interesting �indings came from studies regarding the learning process for low- and high-ability individuals. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_040) Goal setting as a motivational incentive does not always operate with the same magnitude for these two groups. When those with low ability are starting to learn a moderately dif�icult task, providing goals to them will inhibit, rather than enhance, learning. Although the same is true for high-ability individuals, it is not nearly as severe. High-ability individuals, it seems, have the additional cognitive capacity to focus on goals in addition to the new learning in the early learning stage. This difference disappears as the task is learned, and then goal setting enhances the performance of both low- and high-ability individuals. Even though a difference separates the two groups, results from this research suggest that generally, it is wise to design training so that dif�icult tasks are broken down into a set of simpler tasks that are more easily mastered. If this is not possible, then it is best not to introduce goal setting as a motivational device early in the training process.

KSA Base Trainees with higher levels of cognitive ability not only process information more quickly but also typically have a larger store of knowledge. Although we indicate that it is desirable to consider diversity among trainees as an opportunity, this is true only up to a point. Substantial differences in the trainees’ KSAs related to the training can create signi�icant challenges for the design of training. Those with less knowledge will need to have more training material available to them than the others. It is not only differences in KSAs that can create problems in a training group. The speed at which trainees can process the training information can also make a big difference. Those with less cognitive ability might not be able to keep up with the material, or if the material is presented at a slower pace, the more knowledgeable trainees are bored to tears.

The logic of using different approaches for trainees with signi�icant differences in cognitive ability and KSA base makes some sense here. One approach would be to design separate training programs for the two groups. Another approach would be to develop two phases for the training. The �irst phase would be for those with lower cognitive abilities. This phase would develop the KSA base and other prerequisite knowledge for the second phase. The idea here is to reduce the differences in ability to keep up with the material in the second phase. The second phase would include all trainees. Another approach would be to use electronic, self-paced training methods, allowing each trainee to move through the material at a pace consistent with their cognitive abilities.

Valences If training is perceived as leading to attractive outcomes such as better performance and better pay, there is a higher probability that the learning will take place, and transfer to the job will occur. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_041) This was demonstrated in a recent study showing that trainees who believed that the training was relevant to their job were more likely to learn and transfer that learning to the job. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_042)

However, it is important to note that even when trainees acknowledge the value of the training, they might believe that the effort required to master the learning is just not worthwhile. In Piaget’s terms, the

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accommodation process (developing new cognitive categories) is the most dif�icult, whereas assimilation (adding new things to existing categories) is relatively easy. Accommodation requires a learner to create new categories that then need to be linked to other related categories. The more categories that exist and the more developed they are, the more dif�icult the learning. When assimilating, the learner simply adds new elements and rearranges associations among elements within a single category. When accommodating, not only must learners create a new category and place elements into that category, but they must also associate this category with other categories. The elements within those categories must be modi�ied to create the network of associations that appropriately incorporates the new information.

This type of situation occurs whenever a company changes the paradigms it uses for conducting its business. For example, think about what supervisors face when companies move from a traditional, centralized, hierarchical, autocratic decision-making system to a �lexible, team-based, more consensus-based, employee- involvement system. From their experience and training in the traditional system, the supervisors developed a cognitive structure for getting things done. They learned how to make all the decisions for their subordinates and developed a system for communicating those decisions and ensuring that they were carried out effectively. These strategies were probably reinforced over many years. A new piece of equipment or a change in the work process brings new procedures that are learned and assimilated into the supervisor’s decision-making structure relatively easily. Under the new team-based decision-making structure, however, the whole process of making decisions must be relearned because the underlying organizational assumptions have changed. For the supervisor, the focus is no longer on the quality of decisions but on the supervisor’s ability to facilitate quality decisions by the team. Although some aspects of the supervisor’s old decision-making process might still be useful, his cognitive structure must be changed to incorporate the new concepts, and the useful aspects of the old concepts must be reorganized and integrated with the new. For this reason, learning the new system will be more dif�icult for supervisors with a lot of experience than for a newly hired supervisor with little experience in the traditional system.

Anxiety Anxiety is a heightened state of arousal related to feelings of apprehension or fear. High levels of anxiety interfere with other cognitive processes and cause the trainee to withdraw from or actively resist the learning process. Many trainees feel anxious as they enter training. Most trainees arrive at training with an elaborate and highly integrated cognitive structure. They already know a lot about themselves, their work, their company, and many other things. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_043) The objective of training is to change some part of that cognitive structure so that the trainee’s performance will be improved. Change creates anxiety, however, for the following reasons:

Fear of the unknown “Right now I know how things work, but I do not know how this training will affect things.”

Fear of incompetence “I do not know whether I’ll be able to learn this stuff.”

Fear of losing rewards

“What will happen to my pay, status, and perks, among other things?”

Fear of lost in�luence “Will this training make me more or less valuable?”

Fear or lost investments

“I’ve spent a lot of time and energy learning to do it this way. Why change?”

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These concerns deal with the trainees’ needs, their current competencies, and how training will change their current outcomes. Pretraining counseling, the setup of the training facility, and the way in which training is introduced can all reduce the level of anxiety trainees feel. Expectancy theory addresses these factors, and the trainees’ motivation to learn will depend on the answers to these questions. To the degree that the answers indicate that learning is worth the effort, the individual will be motivated to learn.

The “fear of incompetence” issue deserves more discussion. In general, the more experienced employee has a more developed, integrated, and complex cognitive structure. A great deal of effort has gone into creating that cognitive structure. Now he is being told that his KSAs are not good enough and he has to go to training. Trainees also might feel that they are being told that the trainer knows more about how to do their job than they do. Both of these situations can contribute to the trainee feeling that his competence is under attack, leading to defensive behaviors. This is especially true if the training is mandatory. These defensive behaviors can take the form of trying to show the trainer, and the other trainees, that the training is inadequate or irrelevant and that their current KSAs are better than what training has to offer. They also might try to show that the trainer is incompetent. By degrading the training or the trainer, the trainee feels that he is protecting himself.

This generalization is not to say that more experienced people always resist learning new things or discarding old beliefs. They frequently do not. As adults mature, they appear to go through periodic episodes of cognitive reorganization in which long standing concepts or principles are reevaluated. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_044) During these cognitive reorganizations, knowledge that is of little functional value is discarded, and new KSAs are discovered and integrated into their cognitive structure, especially in times of transition such as job or career changes. For adults, the key factor in discarding old learning and acquiring new learning is its practical usefulness. Training that seems abstract, theoretical, or otherwise unrelated to doing the job will likely be ignored or resisted. Training that can demonstrate its value and practical utility will �ind trainees eager to learn. This needs to be built into the training design.

Goal Orientation Goal orientation is a relatively new construct in the adult training literature and is not as well researched as factors contained in Figure 3-6. Nevertheless, it does seem to have a signi�icant impact on motivation to learn. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_045) Goal orientation is the degree to which an individual is predisposed toward either a “learning orientation” or a “performance orientation.” (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_046) Those with a learning goal orientation focus on the learning process. They seek challenging tasks to increase their competence, see negative feedback as important information to help them master the task, and see failure as a learning experience. One result of this learning goal orientation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_039) is persistence when having problems doing a complex task; they are more motivated to continue to try and solve the problem.

Those with a performance goal orientation differ because they focus on the end result. They wish to be seen as competent and therefore desire favorable, not negative, feedback. They prefer easier tasks where they are able to demonstrate their competence rather than learning something new. A result of having this performance goal orientation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i177#glossch03_040) is avoidance of complex tasks for fear of failure, limited persistence, and a tendency to be easily distracted. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_047)

In an organizational setting, those with a performance goal orientation have a strong desire to impress others and focus on the outcome of their performance. Those with a learning goal orientation focus on mastery of the task to develop their competence, acquire new skills, and learn from their experience. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_048) The research

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using goal orientation in an organizational/training setting has only been going on for a few years, but much of it concludes that it is better to have a learning goal orientation than a performance goal orientation in a training setting. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_049) In other words, the focus should be on the process of learning new things rather than on some end product performance goal. The good news is that although there is evidence that goal orientation is a trait, the trait can be in�luenced by the situation. In fact, it seems that as long as there are situational cues suggesting a focus on learning rather than performance, the situational cues will override the goal orientation trait. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_050) Furthermore, these �indings tend to be supported when the task is complex and requires new knowledge and strategies. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_051)

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3.8 Training that Motivates Adults to Learn Learning occurs quite frequently in adults when it appears to offer practical application immediately or in the near future. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_052) For example, a study showed that IBM sales representatives averaged more than 1,100 hours a year in “new learning episodes.” (A new learning episode was de�ined as a deliberate attempt to gain and retain some signi�icant knowledge or skill for problem solving or personal change.) Professors, by contrast, averaged slightly more time (1,745 hours) on fewer episodes. Clearly, adults are not resistant to learning, but they are sometimes resistant to training offered by their companies. Why?

Training Relevance, Value, and Readiness to Learn Some of the most often mentioned reasons for adults engaging in new learning are problems on the job, job/occupational changes, home and personal responsibilities, and competency at some hobby or recreational activity. In the study mentioned previously, about two-thirds of the learning episodes were job-related. The need to know and the readiness to learn are critical aspects in the success of adult learning programs. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_053) The need to know refers to the value of the knowledge to the learner. Adults most often seek to learn when the learning is life-, task-, or problem-centered. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_054) Readiness to learn refers to the amount of prerequisite knowledge (KSAs) the trainees possess and the trainees’ belief that they can learn the material. This aspect is consistent with the principles of self-ef�icacy and expectancy theory. People’s motivation to learn a particular knowledge or skill set is directly in�luenced by their belief that if they put forth the effort, they will be successful in their learning (Expectancy 1). Beyond this expectation, they must feel that the bene�its of learning the KSAs outweigh the bene�its of not learning them (Expectancy 2).

The challenge is to provide instruction in a context that overcomes the natural resistance of adult learners to changing their cognitive structures. Making the relevance and value of the learning clear as it relates to the trainee and organizational goals addresses one source of resistance to learning. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_055) Ensuring that the trainee believes she can successfully master the training content is another important motivator. Over time, adults might develop feelings of low self-ef�icacy in certain areas and feelings of high self-ef�icacy in others. For those with a low self-ef�icacy for learning in general or for the speci�ic content area of the training, the trainer needs to change the self-ef�icacy beliefs so that trainees are more willing to attempt new learning. Doing so requires a careful match between the trainee’s characteristics (e.g., KSA level, learning-style preferences) and the design of the training. Trainers can overcome a signi�icant type of resistance to learning by demonstrating that learning in the subject area can be as easy as in areas in which trainees have high self-ef�icacy.

Allowing Trainees Control Over Their Learning As we pointed out, trainees walk into training with well-developed cognitive maps that re�lect their experiences. Since these experiences differ from person to person, any given training group is likely to differ considerably in the KSAs they possess and in their learning strategies. Trainees often view these differences as hindrances to their learning and resist training with others who are dissimilar. However, these differences can be viewed as a learning resource if the trainees are willing to share their experiences and strategies and if the training environment supports such an exchange. In fact, adult learners prefer sharing their learning experiences with others if the environment is supportive. Even though adults prefer to plan their own learning projects and to adopt a self-directed approach to learning, this preference does not imply a desire to learn in isolation. Rather, it re�lects a desire to set their own pace, establish their own structure for learning, and employ �lexibility in the learning methods. More often than not, adults seek learning assistance from others. In short, they do not mind

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learning from others but they want to maintain some control over the learning experience. These characteristics suggest that training that incorporates individualized components and also makes use of shared, relevant experiences will be most effective at overcoming resistance to learning.

Although it is true that many adults are able to learn new competencies even when they are not told the signi�icance or usefulness of the training, they are much less likely to be able to apply these new competencies to their job. Research suggests that trainees receiving instruction on how to perform a set of skills show improved performance at the end of training but fail to use the skills on their own or to generalize the skill usage to similar situations. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_056) Training that provides instruction on the “how to” and includes the “why and when” results in improved performance and continued use of the skill across appropriate situations. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_057)

Involving Trainees in the Process Training, then, should take into account the motivational and cognitive processes that in�luence the trainee’s readiness and willingness to learn. Many writers emphasize the importance of participation, choice, personal experiences, critical re�lection, and critical thinking as key characteristics of adult learning. (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i176#ch03biblio_058) Involving the trainees in the learning process from needs assessment to design and evaluation addresses many of these issues.

Involvement is a key part of overcoming resistance to change. You might remember from the discussion of OD principles in Chapter 2 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i19#ch02) that involving those who are affected by change in planning and implementing the change creates a sense of ownership. The result is increased commitment to the change and better implementation of the change. Supervisors and trainees should be involved in determining the training needs because both are affected by the change. Supervisors have a clearer understanding of why new KSAs are necessary, how they �it in with the overall plans for the work unit, and the consequences of their employees learning or not learning the new KSAs. The trainees, in turn, see what KSAs they need to improve and understand why those KSAs will be of value. Involving trainees in needs analysis and other parts of the training process will be discussed in more depth in the relevant chapters.

Training design issues are discussed in more detail in Chapter 5 (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i68#ch05) . However, training professionals should consider the following nine principles in developing training programs for their employees:

1. Identify, where possible, the trainees’ strengths and challenges relating to motivation to learn and design the training to address as many of these as is practical.

2. Align learning objectives to organizational goals and show how learning is important to trainee and organizational success.

3. Describe program goals and objectives clearly at the start of training.

4. Engage the trainee early, thus maximizing attention, expectations, and memory.

5. Use a systematic, logically connected sequencing of learning activities so that trainees master lower levels of learning before moving to higher levels.

6. Use a variety of training methods.

7. Use realistic job- or life-relevant training material.

8. Allow trainees to work together and share experiences.

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9. Provide constant feedback and reinforcement while encouraging self-assessment.

The trainer can address the diversity of characteristics trainees bring to training within the context of a group- learning environment by applying these principles to training programs.

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Summary An employee’s performance is a function of motivation, KSAs, and environment. This is true of performance in training as well as job performance. Learning the content of a training program will depend on the motivation and KSAs the trainee brings to the training program and to the training environment. Examination of theoretical frameworks in the �ields of motivation and learning provides us with practical insights for the design of training programs. Theories of motivation fall into two categories: needs theories and process theories. Needs theories, such as ERG, explain what it is that motivates an individual. Process theories, such as expectancy theory, explain how an individual’s needs lead to goal-directed behavior. Self-ef�icacy, a person’s belief in her performance capabilities, plays a signi�icant factor in motivation.

Two historical approaches to understanding learning are the behaviorist perspective (Skinner) and the cognitive perspective (Piaget). The behavioral approach (reinforcement theory) focuses on the importance of the environment, and the cognitive approach (accommodation/assimilation) emphasizes the processes that lead to learning. Together, the two theoretical perspectives provide a more complete picture of the learning process than either can do alone. Bandura’s social learning theory provides a more integrated approach through which we can more fully understand learning. The process of learning provides the foundation for designing effective training. Gagné and colleagues provide this foundation with their theory of instructional design (nine events of instruction).

A model (Figure 3-6) was presented showing individual and organizational factors in�luencing motivation to learn and the in�luence of motivation to learn on training outcomes. The factors in�luencing motivation to learn (self-ef�icacy, cognitive ability, anxiety, valence of outcomes, climate for transfer, and supervisor and peer support) were also discussed in terms of their relationship to resistance to learning. A number of reasons explain why trainees are hesitant to learn new material, such as fear of the unknown or of not being successful at learning the new material. The concept of learning goal orientation was introduced, and how it differed from a performance goal orientation was discussed, including the rami�ications of each orientation to training.

Training design implications from the Motivation to Learn section were provided. To motivate trainees, the training needs to be relevant and valuable. Trainees need to feel con�ident of being successful in learning the training content. Goal setting will increase motivation in the later parts of the training program but will interfere with learning in the early stages for those lower in cognitive ability. Finally, trainee involvement with each phase of the training process will facilitate trainee interest and motivation in the training. The design of training will also need to consider differences in trainee traits and other characteristics within the context of what is practical. In some cases, separate training programs will be best; in other cases, counseling or prerequisite KSA training may be desirable.

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Key Terms Accommodation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i37#ch03term01)

Assimilation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i37#ch03term02)

Attention (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i38#ch03term03)

Behavioral reproduction (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i38#ch03term04)

Classical conditioning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term05)

Cognition (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i37#ch03term06)

Cognitive organization (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i38#ch03term07)

Cognitive process (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term08)

Cognitive structure (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term09)

Environment (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term10)

ERG theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term11)

Existence needs (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term12)

Expectancy theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term13)

Extinction (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term14)

Group dynamics (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i40#ch03term15)

Growth needs (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term16)

Law of effect (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term17)

Learning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i37#ch03term18)

Learning goal orientation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i40#ch03term19)

Performance goal orientation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i40#ch03term20)

Micro Theory of Instructional Design (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i39#ch03term21)

Motivation (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term22)

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Needs theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term23)

Negative reinforcement (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term24)

Observational learning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i38#ch03term25)

Operant conditioning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term26)

Performance model (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term27)

Positive reinforcement (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term28)

Process theories (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term29)

Punishment (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term30)

Reinforcement theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term31)

Relatedness needs (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term32)

Resistance to learning (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i40#ch03term33)

Retention (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i38#ch03term34)

Self-ef�icacy (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term35)

Social learning theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i38#ch03term36)

Symbolic coding (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i38#ch03term37)

Symbolic rehearsal (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i38#ch03term38)

Theory (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i35#ch03term39)

Valence (http://content.thuzelearning.com/books/AUBUS680.16.1/sections/i36#ch03term40)

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Questions for Review 1. Explain the behavioral and cognitive approaches to learning. Which is most relevant to training? Explain

your answer.

2. You are a trainer explaining expectancy theory to a group of managers so they can better understand and deal with employee motivation problems. One of the managers says, “I do not have time for this theory stuff. I want real-world training that helps me in my job.” How would you respond to the trainee? What is your rationale for your response?

3. List the nine events of instruction as outlined by Gagné and Briggs and indicate how you would use them in a training situation.

4. Explain why different people need different training methods.

5. How does a work group exert control over the performance of a worker? Provide a rationale for why this “power” is a positive or negative thing.

6. How can training be designed to motivate learning and accommodate trainee differences?

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Exercises 1. The following steps provide practice in implementing a social learning strategy:

A. Consult with a friend, coworker, or fellow student to identify a target behavior that the person does not currently have but would like to have.

B. Develop a social learning strategy for the person to acquire that behavior.

C. Implement the strategy.

D. In small groups or with the whole class, describe what you tried to do and what happened.

2. In groups of four to six people, discuss the differences among you that would affect the kind of training you would prefer. Use Figure 3-6 on page 77 to start your discussion, but do not limit it to only those characteristics. What accounts for the differences and similarities among your group members?

3. Observe an introductory course in computer programming. Then observe an introductory course in art or music. Which course uses a more behavioral and which a more cognitive approach to learning? If possible, interview the instructors to �ind out why that is their approach. Describe the match between the instructional approach and the subject matter.

4. Use the following to see how expectancy theory explains differences in student motivation.

A. In a small group, discuss the most important outcome that you want to achieve in this class (it may or may not be a letter grade). Have each person indicate how valuable that outcome is by using a scale from 1 = “not at all desirable” to 10 = “extremely desirable.”

B. Ask a group member to describe the most important outcome; then ask that person to describe how strong that motivation is compared with the other goals for this term (use a scale of 1 = “not at all motivated” to 10 = “extremely motivated”).

C. Ask that same person to describe the things that must be done (performance level) to achieve that outcome.

D. Ask the person to indicate the Expectancy 1 level (the belief that she will reach the performance level). Then ask the person to describe Expectancy 2 (the likelihood that successful performance will result in the outcome). Use probabilities (e.g., 1 = “very unlikely,” .5 = “50% chance of happening,” and .9 = “very likely”) to re�lect expectancies.

E. Now examine the expectancy linkages to see how well they conform to the person’s level of motivation. Discuss any discrepancies and why they exist.

5. This exercise is for those who are working together on a project. Without conversation among members of your group, write a list of the group’s norms for performance on the project. When you are done, indicate whether you follow each of the norms and why. Once everyone has �inished the tasks above, collect all the responses and mix them up. Hand them out. Allow each person to read the responses they received and compile the responses on a �lip chart. Once all responses have been read, discuss the implications of your group’s perception of performance norms.

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Web Research There are more theories of learning and motivation than have been described in this chapter. Do a search for a learning or a motivation theory that is not in the text. When you �ind one, write a summary of the theory and suggest how it could be used in training.

Conduct a search for how a business has applied one of the theories in this chapter. Write a summary of how the theory was applied and the results of the application, if this is available.

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Case Analysis: Rick’s New Job Rick recently received an MBA. In university, he was known as smart, hardworking, and friendly. His good grades landed him an internship with Peterson Paper Products (PPP) to head their sales department. Near the end of the internship, Val Peterson, the president and founder of the company, asked Rick to meet him after work to discuss the future.

Peterson Paper Products Val Peterson founded PPP 17 years ago. It purchases raw paper of varying grades and produces paper stock for business, personal stationery, and greeting cards. Its annual sales topped $15 million, and it employs 80 to 90 people, depending on demand. Sales gradually declined over the last two years after steady and sometimes spectacular growth during the previous seven years. Competition increased markedly over the last three years, and pro�it margins dwindled. Although PPP is known for the high quality of its products, consumers are shifting from premium-priced, high-quality products to products with higher overall value. Through all of these changes, PPP maintained a close-knit family culture. At least half of the employees have been with the company since the beginning or are friends or relatives of the Petersons or Mr. Ball, Val’s partner.

Val Peterson, 53, holds the majority of stock in this privately held company that he founded. He began working summers in a paper company during high school. He supervised a shift at a paper plant while he went to college at night. After graduation, he worked at increasingly higher management levels, occasionally switching employers for a promotion. Eighteen years ago, he quit his vice presidency with a major paper product manufacturer to start his own company. Employees see him as charismatic, even-tempered, and reasonable. He spends most of his time and energy on company business, putting in 12-hour days.

Rosie Peterson, 50, is Val’s wife and the controller for the company. She holds 5 percent of the company stock. Rosie never went to college, and her accounting methods are rather primitive (all paper and pencil). Nonetheless, she is always on top of the �inancial picture and puts in nearly as many hours as Val. She exerts a great deal of in�luence on the operations and direction of PPP.

Walter Ball, 61, is both Mr. Peterson’s friend and business partner. He owns 25 percent of the stock and has known Val since before the start of PPP. He is VP of operations, which means that he oversees the computer information systems that run the paper production process and handles the technical side of the business. He is not current on the latest computer or manufacturing technology, but he loves the paper business. He says he will probably retire at 65, but most say they will believe it when they see it.

Diane Able, 41, is the customer service manager and is married to Steve Able, the chief engineer. Diane worked her way up in the company over the last 10 years. She is often asked to assist Mr. Peterson with projects because of her common sense, and he trusts her to keep information to herself.

Rick’s Offer When Rick met Mr. Peterson to “discuss the future,” he was nervous. He knew that Mr. Peterson liked his work so far, but did not know if it was enough to extend his internship another six months. So far, he had worked with Mr. Peterson only on special projects and did not know the rest of the management group well. He was �labbergasted when Mr. Peterson said, “I was thinking that you might like to work here at PPP full-time and help us out with our sales department.”

The two of them discussed the problems in the sales area and talked about what could be done to boost sales. Rick agreed to start the next Monday. During this conversation, Rosie walked in and suggested that they all go out to dinner. At dinner, Rosie emphasized to Rick that PPP was a family operation, down-to-earth and informal. “You probably shouldn’t try to change things too quickly,” she warned. “People need time to get used

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to you. You have to remember, you’re an outsider here and everyone else is an insider.” Then Val moved the conversation back to what the future could be like at PPP.

Rick’s Awakening During the �irst few days at work, Rick spent time getting to know the plant and operations, meeting all the employees, and familiarizing himself with the problems in sales. He met with Val each morning and afternoon. He also met with the key managers, not only to introduce himself but also to convey his desire to work collaboratively with them in addressing the problems in sales. He was conscious not to �launt his university education and to convey that he recognized he was a newcomer and had a lot to learn. In the middle of his second week, Val told him that his reception by the other employees was going very well: “Your enthusiasm and motivation seem to be contagious. Having you join us shows them that things need to change if we’re going to reach our goals.”

Rick noticed, however, that the managers always went out in groups, and he had not been invited along. Also, he was not included in the informal discussion groups that formed periodically during the day. In fact, the conversation usually stopped when he approached. Everyone was friendly, he thought; maybe it would just take a little more time.

By his third week, Rick identi�ied some of the problems in the sales department. Among the four salespeople, morale and productivity were moderate to low. He could not �ind any sales strategy, mission, or objectives. The records showed that Val was by far the leading salesperson. The others indicated that Mr. Peterson “always works with us very closely to make sure we do things right. If he senses there might be a problem, he steps in right away.” After formulating a plan, Rick discussed it with Mr. Peterson. “First, I would like to institute weekly sales meetings so we keep everyone up to date. I also want to create a centralized sales database,” he told him. Mr. Peterson smiled and agreed. Rick felt he was �inally a manager. He did feel that he should have mentioned his idea for creating a sales department mission and strategy, but recalled Rosie’s caution about not moving too fast.

Rick discussed with Mr. Ball the possibility of using the centralized computer system to run word processing and spreadsheet software on terminals. Mr. Ball was concerned that outsiders could access the data in the spreadsheets. Anyway, he did not think the system could handle that task because its primary function was production. Puzzled, Rick asked if a PC could be allocated to him. Mr. Ball said that no one in the company had one.

“Well,” Rick thought, “I’ll just have to bring mine from home.” The next Monday Rick walked through the of�ice carrying his computer. Several of the other managers looked at him quizzically. Making light of it he said, “I’m not smart enough to keep everything in my head and I do not have enough time to write it all down on paper.” As he was setting up the computer, he got a call from Val: “Rick, that computer you brought in has caused a heck of a ruckus. Can you lie low with it until I get back late this afternoon?” Rick thought Val sounded strained but chalked it up to overwork. Rick agreed and left the computer on his desk, partly assembled. Five minutes later, Rosie walked into his of�ice.

“Do you think it’s funny bringing that thing in here? What are you trying to prove—how backward we all are? How much better you are with your big initials behind your name? You’re still an outsider here, buster, and do not forget it.”

Rick tried to explain how much more productive the sales department would be with a computer and that he had tried to use the company’s computer system. However, Rosie was not listening: “Did you think about checking with me before bringing that in? With Val or even Walter? Don’t you think we have a right to know what you’re bringing in here?” Rick knew argument would do no good, so he apologized for not checking with everyone �irst. He said he had a meeting with Val later to talk about it. Rosie said, “Good, talk to Val, but don’t think he calls all the shots here.”

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At the meeting with Val, Val agreed that the computer would certainly help solve the problems in sales: “But, you have to be sensitive to the feelings of Rosie and the other managers. It would be best if you did not use the computer for a while until things calm down.”

The next day Walter walked into Rick’s of�ice. He told Rick that he had moved far too fast with the computer: “That’s not how it’s done here, son. Maybe you’re spending too much time listening to what Val says. He isn’t really the one to talk to about these kinds of issues. Next time you just ask old Uncle Walter.”

Rick spent the next few weeks building the database by hand and conducting sales meetings with his staff. He tried to set up meetings with Mr. Peterson, but Val was usually too busy. One day, Rick asked Diane Able about not being able to see Mr. Peterson and she said, “You know, you monopolized a lot of his time early on. Those of us who worked closely with him before you came were pushed aside so he could spend time with you. Now it’s your turn to wait.”

“Are you the one who’s been spending all the time with him?” Rick asked.

“Well, it’s been me and some of the other managers. We’ve really been taking a beating in sales, so we need to �igure out how to reduce our costs,” Ms. Able answered.

A few weeks later, Rick was called in to Val’s of�ice. Val began, “Rick, you know we’ve been going through some bad times. We’re reducing head count and I’m afraid you’re one of the people we’re going to let go. It has nothing to do with your work. You haven’t really been here long enough to have either succeeded or failed. It’s just that we had unrealistic expectations about how quickly things in sales would turn around. I feel terrible having to do this and I’ll do everything I can to help you �ind another job.”

After packing his things and loading up the car, Rick sat in his car and stared out of the window. “Welcome to the real world,” he thought to himself.

Case Questions 1. Why do you think Rick was let go? How does reinforcement theory apply to the main characters in this

situation? How does expectancy theory apply?

2. Explain Rosie’s and Walter’s reactions to Rick’s computer in terms of resistance to change. How might Rick have used the concepts in this chapter to approach the computer situation so as to gain acceptance?

3. Explain Rick’s inability to “�it in,” using social learning theory. Where did the breakdowns in his processing occur?

4. If Val hired you to develop a management training program for the senior managers at PPP, what are the key concepts from this chapter that you would use in designing the program? Provide appropriate theoretical rationale to support your position.