Week 1 Disscusion 2

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 five 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

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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 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 find 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 benefits 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 difficult to keep up.

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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 finding 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 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 significant 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 identified 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 firms indicates that replacing retiring skilled workers will cost their companies up to $20 million a year and will continue for at least five 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

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of the colleges and technical schools will be fought over fiercely, 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 find 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)

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 fiercely 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

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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:

Identification of performance improvement opportunities and analysis of what caused the opportunity to exist (gap analysis)

Identification of alternative solutions to the opportunity and selection of the most beneficial 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 certified. In general, there are five stages in the certification process:

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 certified, there are continuing audits to ensure company compliance with the standards. Thus, training is an important part of attaining ISO certification and is required on a continuous basis to maintain certification. The certification process also helps improve training. A research study showed improvements in TNA, design, delivery methods, and evaluation following certification. (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 certification.

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

Improved efficiency

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-certified companies with those not certified. He found that certified 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 benefits, however. Once the company makes the decision to seek certification, 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 certification are justified by the benefits.

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 file to keep them up to date with modern operating methods. On the other hand, union leadership also understands that more knowledgeable workers improve the efficiency of the company, resulting in reductions in the size of the bargaining unit. A major challenge for the future is finding 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 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,

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quality management, leadership development, and conflict 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 conflict resolution. The company has benefited from the training with higher productivity and fewer accidents.

Legal Issues Equal employment opportunity, affirmative action, sexual harassment, and related legislation have placed legal requirements on businesses regarding specific types of training. You will learn in detail the training issues related to sexual harassment and equity (specifically 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 fide 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 benefits (e.g., promotions), the burden of proof falls on the employer to demonstrate that its practices are 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 classification. Once it is determined that someone in the classification will be promoted, that person can receive additional training to prepare for the new position. The legal

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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 specific types of training to redress problems identified 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 finally, 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 find 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

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firsthand 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 filed a $300,000 lawsuit for sexual harassment. He won, and the FAA’s director of training was fired. (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 financial 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.

Confidentiality An employee’s performance during and at the conclusion of training is confidential 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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