Workplace training used to be rather boxlike. It focused on teaching employees to do particular activities—operate machines, process work, and so forth. However, as the workplace has shifted from “touch labor” to “knowledge workers” (see Chapter 1), the focus of training has shifted as well. Companies are realizing that workers need not only operational knowhow but also superior job expertise; knowledge about competitive, industry, and technological trends; and the ability to continually learn and utilize new information. These characteristics better help an organization adapt and innovate to compete far more effectively in today’s fast-paced global business world. Because training plays a central role in nurturing, strengthening, and expanding the capabilities of a firm in this way, it has become part of the backbone of strategic management.

The Scope of Training

LO 1

Many new employees come equipped with most of the knowledge, skills, and abilities needed to start work. Others require extensive training before they are ready to make much of a contribution to the organization. The term training is often used casually to describe almost any effort initiated by an organization to foster learning among its members. However, many experts distinguish between training, which tends to be more narrowly focused and oriented toward short-term performance concerns, and development, which, as you learned in Chapter 5, tends to be oriented more toward broadening an individual’s skills for future responsibilities. The two terms tend to be combined into a single phrase—training and development—to recognize the combination of activities organizations use to increase the knowledge and skills of employees.

Research shows that an organization’s revenues and overall profitability are positively correlated to the amount of training it gives its employees. According to Training magazine’s ongoing industry report, U.S. businesses provide each of their employees between 35 and 55 hours, on average, of training annually. By contrast, the 100 best U.S. companies to work for, as cited by Fortune magazine, provide their employees with approximately double that amount of training and sometimes even more. New employees hired by the Ritz Carlton hotel chain get over 300 hours of training. The greatest proportion of training is spent on rank-and-file employees and supervisors.

It’s not unusual for large corporations to have their own “universities” where they train their employees and future managers. Hamburger University, operated by McDonald’s Corporation near Chicago, is probably the best known corporate university. General Electric has a 53-acre training campus north of New York City, where about 10,000 people attend classes each year. The Campbell’s Soup Company operates Campbell University, which has a 2-year program focused on personal leadership development for both aspiring and seasoned managers.

Hamburger University, located at headquarters in Oak Brook, Illinois, is McDonald’s management training center.

Qilai Shen/Getty Images

So how much does all of this corporate training cost? About $70 billion annually. That’s a significant amount of money, so firms want to ensure it’s well spent.

U.S. businesses spend nearly four times as much on informal instruction as they do formal instruction, however. The informal instruction ranges from simple, on-the-job instruction to sophisticated skills training conducted on multimillion-dollar simulators. Other types of training include regular training given to new hires, customer service and communication-skills training, and compliance training—training employees must receive as a result of various legal mandates, such as EEO requirements or OSHA requirements. Airline attendants must undergo mandatory safety training designated by the Federal Aviation Administration. Train crews must annually undergo training mandated by the Federal Railroad Administration.

7.1aA Strategic Approach to Training

Managers should keep a close eye on their firm’s goals and strategies and orient their training accordingly. Is it the firm’s goal to develop new product lines? If so, how should this goal affect its training initiatives? Is the firm trying to lower its costs of production so it can utilize a low-cost strategy to capture new business? If so, are there training initiatives that can be undertaken to deliver on this strategy?

Unfortunately, some organizations fail to make the connection between training and an organization’s goals. Instead, they do whatever the competition is doing or what is the latest trend. As a result, training programs are often misdirected, poorly designed, and inadequately evaluated—not to mention a waste of money. One, not all of a firm’s strategic initiatives can be accomplished with training. Two, not all training programs—no matter how widely they are adopted by other organizations—will be a strategic imperative for your firm.

Because business conditions change rapidly, as does technology, keeping abreast of the types of training a firm’s employees need to remain competitive can be a challenge. If employees consistently fail to achieve their productivity objectives, this might be a signal that training is needed. Likewise, if organizations receive an excessive number of customer complaints, this, too, might suggest a firm’s training is inadequate. Larger firms typically have chief learning officers , who are high-ranking executives responsible for ensuring a company’s training is timely, well designed, and focused on the firm’s strategic issues.

To ensure a firm’s training and development investment has the maximum impact possible, a strategic and systematic approach should be used that involves four phases:

1. A needs assessment based on the firm’s competitive objectives: What training does the firm really need?

2. Program design: Given those needs, how should the training program best designed or structured?

3. Implementation: How should the program be delivered—that is, by what method?

4. Evaluation: How can the firm tell if the training program is really working?

Figure 7.1 presents these elements. We will use it as a framework for organizing the material in this chapter.

Figure 7.1Strategic Model of Training and Development

The four phases of the strategic model of training and development are as follows. Phase 1. Needs assessment: organization, task analysis, person analysis. Phase 2. Design: objectives, trainee readiness, principles of learning. Phase 3. Implementation: methods, learning outcomes. Phase 4. Evaluation: reactions, learning, behavior, results. Phase 4 leads to phase 1.

7.2Phase 1: Conducting the Needs Assessment

LO 2

If you own or manage a business, how would you figure out what types of training your employees need and how much of it? The following are some of the most common types of training employees are given. “Hard skills” refer to the tangible and teachable skills needed to do a job. Learning to operate a machine is an example. “Soft skills” refer to subjective skills that are harder to measure, requiring more discretion or judgment, but equally valuable in the workplace. Working well with other people is an example of a soft skill.

Hard-Skills Training

· On-the-job training for new hires

· Basic skills training

· Budgeting and accounting training

· Machinery operating training

· IT/computer training

· Customer service training

· Compliance (regulations) training

Soft-Skills Training

· Ethics training

· Diversity training

· Leadership training

· Communications training

· Team training

· Time management training

· Interpersonal skills training

To determine what type of training your firm needs, you must conduct a training needs assessment. However, a study conducted a few years ago by the American Society for Training and Development found that organizations conduct needs assessments less than 50 percent of the time. This situation has improved somewhat, in part because tighter training budgets have forced firms to ensure that their training is well aligned with their objectives. Being able to quickly assess the training your employees need is especially important for small businesses that may not have the time or resources to do lengthy needs assessment analyses. Doing a needs assessment does not need to be a laborious task, as this chapter’s small-business feature shows. As Figure 7.2 shows, a needs assessment consists of three parts: an organization analysis, a task analysis, and a person analysis. Each of these steps will be discussed next.

Figure 7.2Needs Assessment for Training

7.2aOrganization Analysis

An organization analysis is an examination of a firm’s environment, goals, strategies, performance, and resources so as to determine what training it should do. For this purpose, HR personnel typically collect data such as information on the quality of a firm’s goods or services, its absenteeism, turnover, and number of accidents. The availability of potential replacements and the time required to train them are important factors in organization analysis. Other issues include technological change, innovation, globalization, quality and process improvement, mergers and acquisition, and restructuring—all of which necessitate training. Why? Because they frequently require employees and managers to take on new roles and responsibilities and adjust to new cultures and ways of doing business.

Economic and public policy issues influence corporate training needs as well. For example, terrorist and cyber attacks continue to change the training that airport and airline workers need, as well as police, IT and transportation employees, nuclear power plant employees, and even security staff at theme parks. Finally, trends in the workforce itself affect a firm’s training needs. As older workers near retirement, younger workers need the training and knowledge to take their place.

Conducting an organization analysis also involves examining a firm’s resources—technological, financial, and human—available to conduct the training. HR departments are under constant pressure to make the most of their training dollars. When budgets are tight, training and development are usually the first programs to be cut. Companies such as Darden Restaurants, Ford, and Merck have used information technology to significantly cut their training budgets. Other companies outsource their training programs, or at least part of them, to external firms to cut costs or to take advantage of expertise the firm lacks. Other organizations purchase “off the shelf” course materials developed by training companies rather than develop their own. Another trend is for companies to partner with firms in their supply chains to jointly train their employees more cost effectively.

Small Business Application

A Small Business’s Guide to Quickly Assessing Its Training Needs

· Do environmental scanning. Continually look at what is going on in your industry and organization to anticipate upcoming training needs. Enlist the help of employees and managers in the process. Question managers about their strategic goals and their impact on the organization, and gear your analysis accordingly.

· Do internal scanning. Determine what skills are most important to acquire in terms of your organization’s current and future needs. Which ones will provide the biggest payback?

· Gather organizational data. Performance data for your firm (such as errors, sales, and customer complaints) and staffing data (such as turnover and absenteeism) can be very helpful as a starting point.

· Develop a plan. Once the training need has been identified, identify various ways to deliver it and consider the costs and benefits of each. Determine what kind of growth or other measure is a reasonable result of the training.

· Utilize state and local government programs. Many state and local governments have programs to help small businesses train their employees. For example, the Texas Workforce Commission will pay small businesses in Texas up to $1,800 annually in tuition and fees for each new full-time employee hired and trained at a local college. (For a current employee, the program covers tuition and fees up to $900 annually.)

· Make the needs-assessment process ongoing. Repeat these activities as your business needs change.

Sources: Patti Greene, “Five Affordable and Effective Ways Small Business Owners Could Better Train Employees,” Forbes (October 21, 2016), https://www.forbes.com; “TWC Launches Small Busin.ess Employee Training Program,” Your Houston News (November 20, 2010), http://www.yourhoustonnews.com; “Employee Training Tips,” dnb.com, http://smallbusiness.dnb.com; Ron Zemke, “How to Do a Needs Assessment When You Think You Don’t Have Time,” Training 35, no. 3 (March 1998): 38–44.

7.2bTask Analysis

The second step in training-needs assessment is task analysis. A task analysis involves reviewing the job description and KSAOs of a particular position, including the specific actions and behaviors required to do it. In other words, a task analysis goes beyond just the “what” of a job and also includes the “how.”

If the job is new or jobs are changing, the first step in a task analysis is to list all the tasks or duties included in the job. The second step is to list the steps the employee needs to take to complete each task. The type of performance for each task (i.e., manipulation, speech, and discrimination), along with the skills and knowledge necessary to do it, can then be identified. For example, in the task of taking a chest X-ray, a radiologist correctly positions the patient (manipulation), gives special instructions (speech), and checks the proper distance of the X-ray tube from the patient (discrimination). The types of skills and knowledge that trainees need can be determined by observing and questioning skilled jobholders or by reviewing job descriptions. This information helps trainers select program content and choose the most effective training methods.

Jobs are changing so quickly today that instead of focusing on a fixed sequence of tasks, firms are finding that their employees need more flexible sets of competencies to adapt. A competency assessment focuses on the sets of skills and knowledge employees need to be successful, particularly for decision-oriented and knowledge-intensive jobs. A competency assessment goes beyond simply describing the traits employees must have to successfully perform the work. It also captures elements of how those traits should be used within an organization’s context and culture. That might include the motivation levels of employees, their interpersonal skills, and so on. “It’s easy for top performers to become experts in a certain niche, but ‘talent factories’ focus on creating generalists,” explains one HR consultant. “To get the most from talented employees, they should know how to handle a wide range of functions.”

Instead of offering a laundry list of training plans as it used to, Amway has established job competencies for its employees around the world. The competencies denote the particular skills each employee needs for his or her job and a training “road map” to get them there. Highlights in HRM 1 shows an example of a partial competency assessment tool used for evaluating a manager.

Highlights in HRM 1

A Competency Assessment for a Managerial Position

For each item, select the number that best describes the manager’s characteristics. For items that do not apply, select NA (not applicable). For other items for which you lack sufficient observations or documentary evidence, select DK (don’t know).

· 4 – Exemplary

· 3 – Proficient

· 2 – Progressing

· 1 – Needs Assistance

· NA – Not Applicable

· DK – Don’t Know

2. Competency 1: Behaves professionally and encourages other staff members to do likewise.

4 3 2 1 NA DK

Evidence:

3. Competency 2: Behaves ethically and encourages staff members to do likewise.

4 3 2 1 NA DK

Evidence:

4. Competency 3: Uses a variety of modes of communication and conveys information fully and clearly.

4 3 2 1 NA DK

Evidence:

5. Competency 4: Seeks input from all levels and demonstrates fairness and consistency.

4 3 2 1 NA DK

Evidence:

6. Competency 5: Engages in an open style of management and is open to criticism from supervisors and subordinates.

4 3 2 1 NA DK

Evidence:

7. Competency 6: Searches for and embraces innovative solutions to improve department’s programs and products.

4 3 2 1 NA DK

Evidence:

7.2cPerson Analysis

A person analysis is the process of determining which employees require training and, equally important, which do not. This helps organizations avoid providing all employees training when some do not need it. In addition, a person analysis helps managers determine what prospective trainees are able to do currently so that the programs can be designed to provide training that will benefit them.

Performance appraisal information can also be used to conduct a person analysis. However, although performance appraisals might reveal which employees are not meeting the firm’s expectations, for example, they typically do not reveal why. If the performance is due to ability problems, training is likely to be a good solution. If the performance is due to poor motivation or factors outside an employee’s control, training might not be the answer. Conducting a deeper performance diagnosis is discussed in Chapter 8 on performance appraisals. Ultimately, managers have to sit down with employees to talk about areas for improvement so that they can jointly determine the training or other approaches that will have maximum benefit. A person analysis along with appraisal information can also be used to determine the training someone needs for a new position, a promotion, or to take on new responsibilities.

7.3Phase 2: Designing the Training Program

LO 3

Once you have assessed your firm’s training needs, the next step is to design the training program. Experts believe that the design of training programs should focus on at least four related issues:

1. the training’s instructional objectives,

2. readiness of trainees and their motivation,

3. principles of learning, and

4. characteristics of instructors.

7.3aDeveloping Instructional Objectives

After conducting organization, task, and person analyses, managers should have a more complete picture of their firms’ training needs. On the basis of this information, they can more formally state the desired outcomes of training via written instructional objectives , which describe the skills or knowledge to be acquired and/or the attitudes to be changed. The learning objectives at the beginning of this chapter are examples of instructional objectives.

The objectives should be performance centered. Performance-centered objectives typically include precise terms, such as “to calculate,” “to repair,” “to adjust,” “to construct,” “to assemble,” and “to classify.” For example, the stated objective for one training program might be, “Employees trained in team methods will be able to perform the different jobs of their team members within six months.”

7.3bAssessing the Readiness and Motivation of Trainees

Two preconditions for learning affect the success of those who are to receive training: readiness and motivation. Trainee readiness refers to whether or not the experience and knowledge of trainees have made them ready to absorb the training. Do they have the background knowledge and the skills necessary to absorb what will be presented?

It is often desirable to group individuals according to their readiness, as determined by test scores or other assessment information, and to provide alternative types of instruction for those who need it. The receptiveness and readiness of participants in training programs can be increased by having them complete questionnaires about why they are attending training and what they hope to accomplish as a result of it.

The other precondition for learning is trainee motivation. The organization needs to help employees understand the link between the effort they put into training and the payoff. Why is the training important? What will happen if it does not occur? Moreover, what is in it for the individual employee? By focusing on the trainees themselves, managers can create a training environment that is conducive to learning. Unless they are nearing retirement, most employees are motivated by training if it can help them perform better, advance their careers, or both.

7.3cIncorporating the Principles of Learning

What makes some types of training more effective than others? Training has to build a bridge between employees and the organization. One important step in this transition is giving full consideration to the psychological principles of learning—that is, the characteristics of training programs that help employees grasp new material, make sense of it in their own lives, and transfer it back to their jobs. All things considered, training programs are likely to be more effective if they incorporate the principles of learning shown in Figure 7.3.

Figure 7.3Principles of Learning

The principles of learning are as follows: goal settings, individual differences, active practice and repetition, whole-versus-part learning, experiential learning, massed, distributed, and continuous learning, feedback and reinforcement, meaningfulness of presentation, and modeling.

Goal Setting

In some cases, goal setting can simply take the form of a “road map” of the course or program, its objectives, and its learning points. When trainers take the time to explain the training’s goals and objectives to trainees—or when trainees are encouraged to set goals on their own—the level of interest, understanding, motivation, and effort directed toward the training is likely to increase. Allowing employees to undergo training in areas that they want to pursue can be very motivating, as can enlisting employees to train other employees with the information they learn. Who in an organization does not want to be called upon for their expertise?

Meaningfulness of Presentation

Trainees will be better able to learn new information if it is presented using terminology they can understand and the training is connected with things already familiar to them. This is the reason why trainers frequently use colorful examples to which trainees can relate. The examples make the material meaningful. In addition, material should be arranged so that each experience builds on preceding ones. In this way, trainees are able to integrate the experiences into a usable pattern of knowledge and skills.

Modeling

The old saying “A picture is worth a thousand words” applies to training. Just as examples increase the meaningfulness of factual material or new knowledge in a training environment, modeling increases the salience of behavioral training. In other words, people learn by mimicking other people. For example, if you were learning to ride a horse, it would be much easier to watch someone do it—and then try it yourself—than to read a book or listen to a lecture and hope you can do it right.

Modeling can take many forms. Real-life demonstrations and recorded demonstrations, visual aids, pictures, and drawings can get the message across. In some cases, modeling the wrong behavior can even be helpful if it shows trainees what not to do and then clarifies the right behavior.

Individual Learning Differences

People learn at different rates and in different ways. Visual learners absorb information best through pictures, diagrams, and demonstrations. Verbal learners absorb information best through spoken or written words. Similarly, some learners who do horribly in large lecture settings excel in small discussion groups.

Trainers can help accommodate different learning styles in a variety of ways. The key is to avoid delivering the material in only one way. So, for example, instead of delivering a monologue, trainers should incorporate variety into their presentations. They should use visual aids, encourage the participation of learners by including them in demonstrations, and ask them questions about their own experiences. Hands-on activities and breaking large groups into smaller groups for specific activities can also help trainers accommodate different learning styles.

Active Practice and Repetition

Trainees should be given frequent opportunities to practice what they will ultimately be expected to do. An individual being taught how to operate a machine should have an opportunity to practice on it. A manager being taught how to train should be given supervised practice in training.

Practice causes behaviors to become second nature. For example, when you first learned to drive a car, you focused a great deal on the mechanics: “Where are my hands, where are my feet, and how fast am I going?” As you practiced driving, you began to think less about the mechanics and more about the road, the weather, and the traffic. Other forms of learning are no different—by practicing, a trainee can forget about distinct behaviors and concentrate on the subtleties of how they are used.

Experiential Learning

Experiential learning refers to the process of learning by experience or “doing,” often outside the classroom and without traditional ready-made learning content. Experiential learning might sound like hands-on learning, which can be a part of experiential learning, but it is more than that. It involves not only engaging in an activity, but reflecting on it, critically analyzing it—and potentially improving upon it—and then applying it in new situations or settings. Benjamin Franklin once said, “Tell me and I forget, teach me and I remember, involve me and I will learn.” Experiential learning corresponds to the “involve me and I will learn” part of Franklin’s statement. Simulations, games, and special assignments, which we will discuss later in the chapter, fall into the category of experiential learning.

Whole-versus-Part Learning

Most jobs and tasks can be broken down into parts that lend themselves to further analysis. Learning to sell a product is an example. The process can essentially be broken down into a few discrete steps: finding customer opportunities; uncovering a prospective customer’s needs by learning the proper questions to ask him or her; presenting the firm’s product in a way that meets those needs; and finally, learning how and when to ask the customer to buy the product (closing the deal). If the task can be broken down successfully, it probably should be to facilitate learning; otherwise, it should probably be taught as a unit.

Programmed instruction, which is also referred to as self-paced learning, is often used to break down learning into sequences for employees to learn at their own pace. After being presented with a small segment of information, the trainee is required to answer a question, either by writing in a response or selecting one on a computer. If the response is correct, the trainee is presented with the next step (or screen) in the material. If the response is incorrect, further explanatory information is given, and the trainee is told to try again.

Massed, Distributed, and Continuous Learning

Another factor that determines the effectiveness of training is the amount of time devoted to practice in one session. Should trainees be given training in five 2-hour periods or in ten 1-hour periods? It has been found in most cases that spacing out the training will result in faster learning and longer retention. This is the principle of distributed learning. Rather than a serious of events, continuous learning is an ongoing process whereby employees are continually acquiring new skills and knowledge via training, observing more experienced workers, and asking for help from others when they need it.

A person’s training progress, measured in terms of either mistakes or successes, can be plotted on a learning curve like the one in Figure 7.4. In many learning situations, there are times when progress does not occur. Such periods show up on the curve as a fairly straight horizontal line called a plateau. A plateau can occur because of reduced motivation or because a person gets discouraged when he or she does not always perform a new task as well as hoped. It is a natural phenomenon, and learners usually experience a spontaneous recovery later, as Figure 7.4 shows.

Figure 7.4A Typical Learning Curve

A graph plots the performance from low to high versus the time in weeks. The learning curve begins with low performance and rises till below average performance. After which, for a few weeks, the performance remains stable, which is the plateau. Then, with time, it rises again and reaches high performance.

Feedback and Reinforcement

Can any learning occur without feedback? Some feedback comes from trainees themselves via self-monitoring, whereas other feedback comes from trainers, fellow trainees, and the like. Feedback can help individuals focus on what they are doing right and what they are doing wrong. Think about when you first learned how to throw a baseball, ride a bicycle, or swim. Someone, perhaps a parent, told you what you were doing right and what things to correct. As you corrected those things, you perhaps got better.

As a follow-up to training or as part of the training itself, managers can use relatively simple rewards to discourage undesired behaviors and encourage and maintain desired behaviors. Doing so is a form of behavior modification. Behavior modification operates on the principle that behavior that is rewarded, or positively reinforced, will occur more frequently, whereas behavior that is penalized or unrewarded will decrease in frequency. The retailer Nordstroms has found that nothing more than words of encouragement and feedback are needed to strengthen employee behaviors. This approach is often used in smaller companies that don’t have particularly formal or sophisticated rewards systems. However, more tangible rewards such as prizes, awards, and ceremonies can help reinforce desirable behaviors.

Encouragement is most effective when it is given immediately after a trainee successfully accomplishes a certain task. This is why some employers, including Nordstroms and Whole Foods, have instituted spot rewards programs, which award employees “on the spot” when they do something particularly well during training or on the job. The awards can consist of cash, gift cards, time off, or anything else employees value.

7.3dCharacteristics of Instructors

The success of any training effort will depend in large part on the teaching skills and personal characteristics of the people doing the training. What separates good trainers from mediocre ones? Often a good trainer is one who shows a little more effort or demonstrates more instructional preparation. However, training is also influenced by the trainer’s personal manner and characteristics such as his or her knowledge of the subject, enthusiasm and sincerity, interest in trainees, sense of humor, ability to communicate clearly, and willingness to provide individual assistance to trainees. Because they can have a huge impact on the workforce, organizations should reward managers who are excellent trainers. Too often managers are not recognized for their contributions to this important aspect of HRM.

7.4Phase 3: Implementing the Training Program—Training Delivery Methods

LO 4

Have you ever sat through a less-than-great training session and thought to yourself, “There has got to be a better way to get this material across”? Perhaps what was lacking was the right training method. Choosing the right one depends on the KSAOs to be learned. To organize our discussion of various training methods, we have placed them along the learning continuum shown in Figure 7.5—from learning that is very reactive and passive to learning that is very active. For example, if the material is mostly factual or designed to create a shift in employee attitudes, methods such as lecture, classroom, or online instruction may be fine. However, if the training involves a large behavioral or skill component, more hands-on methods such as on-the-job training or a special job assignment are likely to work better. In other words, the method should be matched to the learning outcome you are trying to achieve.

Figure 7.5Learning Outcomes Differ by Training Method

Keep in mind that many of the methods are used to train both nonmanagers and managers, although some are more used predominantly for one group than the other. In addition, multiple training methods are often used in conjunction with different types of learners. Using multiple methods is referred to as blended learning. As Figure 7.6 shows, traditional classroom instruction delivered by lecturers continues to be the number-one training delivery method for formally training employees. However, its popularity has been steadily dropping relative to electronic-based methods, which we will discuss shortly.

Figure 7.6Training Delivery Methods

The bar chart provides the percentage of training hours delivered by various training delivery methods. Classroom instructions, 41%. Online or computer, no instructor, 30.4%. Blended learning, 27.5%. Virtual classroom, webcast, video broadcasting, instructor from a remote location, 16.4%. Social media learning, collaboration, 5%. Mobile devices, 2.9%.

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Source: Adapted from “2016 Training Industry Report,” Training (November–December 2016): 36.

On-the-Job Training

By far the most common informal method used to train employees is on-the-job training (OJT) . By some estimates, 80 to 90 percent of employee learning occurs via OJT. OJT has the advantage of providing hands-on experience under normal working conditions and an opportunity for the trainer—a manager or senior employee—to build good relationships with new employees. Figure 7.7 shows the basic steps of an OJT program.

Figure 7.7The PROPER Way to Do On-the-Job Training

Text Description automatically generated

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Source: Scott Snell, University of Virginia.

Although it is used by all types of organizations, OJT is sometimes poorly implemented because of its informal nature. To overcome these problems, training experts suggest firms develop realistic goals and measures for the training as well as plan a specific training schedule for each trainee. Conducting periodic evaluations after the training is completed can help ensure employees have not forgotten what they have learned.

KLM Royal Dutch Airlines uses OJT to train its flight attendants. The airline places trainees in the classroom for a certain period and then gives them additional training during evaluation flights. On these flights, experienced flight attendants provide OJT based on a list of identified job tasks. Some tasks, such as serving meals and snacks, are demonstrated during the actual delivery of services to passengers. Other tasks are presented to trainees, away from passengers, between meal service.

An extension of OJT is apprenticeship training . With this method, individuals entering the skilled trades are given thorough instruction and experience, both on and off the job. Machinists, aviation mechanics, and electricians are examples of people who hold skilled-trade jobs. Generally, an apprentice is paid 50 percent of a skilled journey worker’s wage to start with, but the wage increases at regular intervals as the apprentice’s job skills increase. When the apprentice successfully completes the apprenticeship, he or she becomes a certified journey-level worker earning full pay. Case Study 2 at the end of the chapter explains how Whirlpool Corporation is utilizing apprenticeships to hire new employees.

Apprenticeship programs originated in Europe centuries ago and are still used extensively there. In the United States, tens of thousands of organizations have registered their programs with the U.S. Department of Labor’s Office of Apprenticeships and state agencies. There are apprenticeships available in a wide range of industries, including construction and manufacturing and the telecommunications, arts, and health fields.

Special Assignments

Special job assignments (discussed in Chapter 5) involve assigning trainees, who are often but not always on managerial tracks, to different jobs in different areas of a firm, often in different regions and countries. In some cases, they are groomed by other managers in understudy assignments to do important job functions. Job rotation and lateral transfers also provide trainees with a variety of hands-on work experiences. Special projects, task forces, and junior boards give trainees an opportunity to study an organization’s challenges, make decisions about them, discuss what aspects of the projects went right and wrong, and plan and work on new initiatives.

Cooperative Training, Internships, and Governmental Training

Similar to apprenticeships, cooperative training programs combine practical on-the-job experience with formal classes. For example, a student might alternate work at an organization for one semester (for pay) and then go to school the next semester. Many organizations, including Fannie Mae, General Motors, Burger King, Champion International, Cray, Inc., and the insurance company UNUM, have invested millions of dollars in educational cooperative training programs in conjunction with high schools and colleges.

Internship programs, which we discussed in Chapter 5, are jointly sponsored by colleges, universities, and a variety of organizations. The programs offer students the chance to get real-world experience while finding out how they will perform in work organizations. Organizations benefit by getting student-employees with new ideas, energy, and eagerness to accomplish their assignments. Some universities and community colleges allow students to earn college credits for successfully completing internships.

Apprenticeships are a good way to recruit and train employees.

The federal government and various state governments work together with private employers to sponsor training programs for new and current employees at career centers nationwide that take place at American Job Centers, which are also known as “Career One Stop” centers, or “Workforce Development” centers. The centers help workers find jobs, help employers find qualified workers, and provide job training and other employment services all under one roof (hence the name One Stop). 3M, Honeywell, and General Mills are just a few of the companies involved in the One Stop program.

Simulations

Simulations are used when it is either impractical or unwise to train employees on the actual equipment used on the job. An obvious example is training employees to operate aircraft, spacecraft, and other highly technical and expensive equipment. Southwest Airlines has 10 full-motion 737 flight simulators at its training center adjacent to Southwest’s headquarters at Dallas’s Love Field. During each 4-hour training situation in a simulator, a flight crew faces more abnormal flight situations than it would in a lifetime. The Federal Aviation Administration developed a simulator to dramatically speed up the training of air traffic controllers, a process that used to take as long as 5 years. Variables such as wind speed, precipitation, and the number of airplanes to be guided can be adjusted on the simulator to test the ability of trainees.

The distinction between simulators like the cockpits at Southwest Airlines that move/jostle flight crews about and computer-based simulations has blurred. To train its forklift operators, the aluminum company Alcoa uses a computer simulation called Safedock. In the simulation, trainees perform common tasks such as moving loads from one end of a loading area to the other. If a trainee makes a wrong move, he or she instantly sees the consequences: The forklift might end up driving off the dock or crashing into another forklift. Medical students and doctors are putting on virtual reality headsets to train for different types of trauma care, too.

Simulations can also be used to help employees and managers make tactical decisions. Marriott International has a computer program called Business Acumen to train its managers on the finer points of hotel operation. The program simulates hotel operation scenarios such as budgetary decisions. The Federal Emergency Management Agency has used simulations to help managers better respond to crises. In one computer simulation, a chemical cloud engulfs a city, and managers attempt to respond dynamically to the various problems it creates.

Pilots are trained with flight simulators to help them make the right decision for critical situations without the risk.

Arterra/Getty Images

Games

Games are becoming more popular for training purpose, a phenomenon that’s being referred to as to the “gamification” of learning. Sometimes the games resemble actual tasks done in the workplace. At other times, the games communicate principles that can be transferred to the job. Because games have a competitive component and are fun, trainers have found people are more likely to want to engage with them as well as remember what they learned from them. Generation Zers and millennials tend to like them. To train its retail employees, many of whom are younger, Bloomingdales uses games they can load on a wide variety of devices and play during slow times on the job. Employees report that the games have given them more confidence in their selling skills and increased their desire to participate in corporate training.

Games (and simulations) do not always require a computer, however. Motorola developed a noncomputer-based simulation called “Equal Employment Opportunity: It’s Your Job” to teach the basic principles of equal employment opportunity to managers. Trainees get caught up in the competitive spirit of the game and at the same time absorb and remember government regulations. They also become aware of how their own daily decisions affect their employer’s compliance with these regulations.

E-Learning

The training methods we just discussed are evolving into what trainers today refer to as e-learning. E-learning covers a wide variety of electronic applications such as Web and computer-based training (CBT), and social networks. It includes the delivery of content via the Internet, intranets and extranets, mobile devices, DVDs, podcasts, and “virtual classrooms” found in the gaming platform Second Life. E-learning need not be expensive. Many e-learning training programs use existing applications employees are familiar with such as PowerPoint, Word, Adobe Acrobat, and audio and video files that can be easily uploaded and viewed or listened to online using computers and mobile devices.

Virtual reality headsets are being used to train people in different occupations, including people in medical occupations.

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iStockphoto.com/yoh4nn

Increasingly, e-learning involves the use of a learning management system (LMS) , which combines a company’s e-learning, employee assessment tools, and other training functions into one electronic tool, often custom built for the firm by software vendors. Using the software, managers can assess the skills of employees, register them for courses, deliver interactive learning modules directly to employees’ desktops when they need or want them, evaluate and track their progress, and determine when they are ready to be promoted.

A major advantage of e-learning is that it allows the firm to bring training to employees, which is generally more efficient and cost effective than the other way around. The nuclear power plant industry is a case in point: Nuclear power plant training is frequent and time consuming. For workers just to remove their protective gear and commute to a separate training venue can take an hour or more. One nuclear power company that switched to e-learning reported that it saved nearly $1 million and 10,000 employee-hours in a single year by doing so.

Just-in-Time Training and Microlearning

E-learning also allows companies to offer individual training to employees exactly when and where they need it, which is referred to as just-in-time training . Just-in-time training helps alleviate the boredom trainees experience during full-blown training courses, and employees are more likely to retain the information when they can immediately put it to use.

Microsoft has created hundreds of short audio and video clips the company’s sales professionals can download onto their mobile devices as they need them. Long training courses pulled people away from making sales, and with so many products continually being launched, it was difficult for them to keep up to date if they had to take frequent training sessions. Also, employees didn’t remember the training if they could not put it to use immediately.

To be sure, shorter training sessions are definitely a growing trend. Duolingo is one of a number of e-learning companies that offers microlearning training sessions. Microlearning refers to training sessions that take place in very short timeframes, usually 5 minutes or less. Between rides, Uber drivers in Colombia, Brazil, and Mexico can use the Duolingo app to improve their English-language skills. When the drivers complete a certain number of lessons, they are allowed to provide rides to English-speaking riders. Microlearning and just-in-time training are examples of distributed learning rather than mass learning.

MOOCs

Recall from Chapter 1 that a MOOC is an online course anyone can take. Although they were initially used in academia, MOOCs are now being used by businesses. To help its client companies find web developers with coding experience, the recruiting company Aquent launched a MOOC. Thousands of people signed up for a coding course Aquent hosted. A couple of hundred went on to get jobs.

Rather than developing their own MOOCs, Bank of America, Qualcomm, and other firms are assigning employees content aligned to their training in already-existing MOOCs. There are literally thousands of MOOCs. Udacity, edX, Coursera, and Khan Academy are some of the major MOOC providers.

Like other types of online learning, the lack of contact with other people can be a problem for some learners. Some MOOCs allow students to have classroom discussions virtually with other people. Others include application assignments and projects. Still others allow instructors to record audio comments or videos about what’s going on in the course each week, which can help keep learners engaged.

Social Media

About 5 percent of the training hours delivered to employees involve social media sites, such as blogs and wikis (sites where people can post information as they can on Wikipedia). When U.S. soldiers were having problems using a grenade launcher, a unit commander posted a question on one of the Army’s internal social media sites. Shortly thereafter, someone who had experienced a similar problem posted a simple solution. The Cheesecake Factory restaurant chain trains employees by letting them upload and share video snippets on job-related topics, including how best to prepare certain foods and provide good customer service.

Workplace by Facebook and Yammer are two corporate social media tools firms can use, but even a basic community page on LinkedIn or Facebook will work: A trainer can set up a page to provide information about an upcoming training session, post materials for it, and engage participants by allowing them to ask questions, volunteer answers, and collaborate with one another before and after the session.

Behavior Modeling

Behavior modeling is a learning approach in which work behaviors are modeled, or demonstrated, and trainees are asked to mimic them. Behavior modeling consists of four basic components:

1. Learning points. For example, the learning points might describe the skill, why it’s important for trainees to learn, and when it should be utilized.

2. Modeling. Participants might view a video in which a manager deals with an employee in an effort to improve his or her performance. The manager would model how specifically to deal with the situation and demonstrate the learning points.

3. Practice. Trainees then practice the behaviors modeled.

4. Feedback and reinforcement. The trainer and other trainees reinforce the behavior with praise, approval, encouragement, and attention. Digitally recording the sessions can also be very instructive.

Behavior modeling seems to work, according to various studies. Military training is a classic example of how behavior modeling can work. Drill sergeants model the behavior expected of new recruits, who, in turn, by emulating them, develop discipline and confidence.

Role-Playing

Role-playing consists of playing the roles of others, often a supervisor and a subordinate who are facing a particular problem, such as a disagreement or a performance problem. Role-playing is used not only for managers, but also to train salespeople to question customers to understand their needs for goods and services. Health care professionals also use role-playing to learn to question patients and be empathetic and sensitive to their concerns. Virgin America uses role-playing exercises to help employees lean how to deal with irate or unruly passengers.

Computer programs that simulate role-playing have also been developed. Virtual Leader, a product by SimuLearn, is one such program: Management trainees interact with animated “employees”—some of whom are more cooperative than others. The trainees are then given feedback as to how well they applied their managerial skills to each situation.

Coaching

Coaching consists of a continuing flow of instructions, comments, and suggestions from the manager to a subordinate. Coaching is more than just a flow of instruction though. It is a flow of encouragement and support meant to help people not just do their jobs right and get ahead but become leaders.

Part of coaching involves talking to one’s employees about what their goals are and being excited about their achieving those goals, even if it means good employees will ultimately leave your department and you will have to replace them with new ones and begin the process anew. Once a manager understands the employee’s goals, the manager can design ways to help them grow their skills by taking on new leadership responsibilities, training and mentoring other employees, spearheading projects, and then providing the individual with performance feedback on.

One way to coach employees being groomed as managers is to allow them to participate in managers’ staff meetings. This can help them become more familiar with the problems and events occurring outside their immediate areas and how they are handled by exposing them to the ideas and thinking of other managers. Note, however, that coaching is important for all employees to receive—not just employees who are on managerial tracks. Many top managers as well as rank-and-file employees say that without coaching they would never have accomplished for their organizations what they might have.

Case Studies

A particularly useful method used in classroom learning situations is the case study. The FBI’s Integrated Case Scenario method is used as part of a multiweek training program for all new FBI agents. Using documented examples, case-study participants learn how to analyze (take apart) and synthesize (put together) facts, become conscious of the many variables on which management decisions are based, and, in general, improve their decision-making skills. Figure 7.8 provides a set of guidelines for when and how to conduct case studies.

Figure 7.8

Case Studies

When Using Case Studies …

· Decide which goals can best be achieved by using case studies.

· Identify available cases that might work or consider writing your own.

· Set up the activity—including the case material, the room or place, and the schedule.

· Give all participants a chance to take part in the discussions and activities and try to keep the groups small.

· Bridge the gap between the theories presented in case studies and how they can actually be put into practice in your organization.

Source: Adapted from Albert A. Einsiedel Jr., “Case Studies: Indispensable Tools for Trainers,” Training and Development (August 1995): 50–53.

Seminars and Conferences

Seminars and conferences, like classroom instruction, are useful for bringing groups of people together for training and development. Seminars and conferences can be used to communicate ideas, policies, or procedures, but they are also good for raising points of debate and discussing issues (usually with the help of a qualified leader) that have no set answers or resolutions. For this reason, seminars and conferences are often used when change is an organization’s goal.

Outside seminars and conferences are often conducted jointly with universities and consulting firms. Associations and third-party organizations, such as the American Management Association, the Conference Board, and the Center for Creative Leadership, also offer many different types of management seminars. The construction and mining equipment manufacturer Caterpillar is one company that, in conjunction with an outside consulting firm, has developed a training program to groom new managers so it would have enough of them to effectively run the company in the coming decade. Caterpillar began with a series of high-level meetings and strategy sessions. Out of those meetings 11 characteristics were identified that the company seeks in its managers and leaders.

Classroom (Lecture) Instruction

You might wonder why firms use classroom training when so many other interactive (often electronic) methods are available. Some of the advantages of classroom instruction relate to motivation and attendance. Have you ever taken a self-paced course that lacked a classroom setting? If so, you might have had a hard time completing it. As one professor put it, “When it comes to learning, just getting to class is half the battle.” In addition, if a trainee experiences problems, a live instructor is generally in the best position to help the trainee.

Classroom training need not necessarily take place in a classroom per se. Electronic Data Systems uses videoconferencing to train its employees wherever they are in the world rather than having them travel to one location. The company conducted a “coaching skills for leaders” program for 1,500 managers in 41 countries via videoconferencing.

Blended Learning

Blended learning is the use of both in-person classroom learning and online learning. Blended learning is effective because different people learn better in different ways, and it breaks up the tedium of a single learning technique. For example, to instruct flight crew trainees, airlines play actual cockpit audio recorded on airplanes involved in accidents. After listening to the recordings, the trainees discuss the behavior of the crew during the crisis. Recordings of trainees themselves can also be used. Golf and tennis coaches frequently record their students to let them see their mistakes and then provide them with verbal instructions for improvement. Figure 7.6 shows blended learning is the third most common way firms deliver training to their employees.

Apply What You Learned: Types of Training

Complete the following activity.

7.5Additional Training and Development Programs

LO 5

In addition to training to address the demands of a particular job, many employers develop training programs to meet the special needs of employees. In this final section, we summarize some of these programs, including orientation training and onboarding, basic skills training, team training, cross-training, and ethics and diversity training. Intercultural training will be covered in Chapter 15.

Apply What You Learned: Team Training Skills

Complete the following activity.

7.5aOrientation and Onboarding

Orientation is the formal process of familiarizing new employees with the organization, their jobs, and their work units. Like training, which emphasizes the what and the how, orientation often stresses the why. It outlines the organization’s philosophy and is designed to influence employee attitudes about their role and work they will be doing.

An organization’s HR department ordinarily is responsible for coordinating orientation activities and providing new employees with information about their conditions of employment, pay, benefits, and other areas not directly under a supervisor’s direction. Those responsible for conducting the orientation often use checklists so no aspect of the orientation is overlooked. The checklist would include such things as

1. an introduction to other employees,

2. an outline of training,

3. attendance, conduct, and appearance expectations,

4. the conditions of employment, such as hours and pay periods,

5. an explanation of job duties, standards, and appraisal criteria,

6. safety regulations,

7. a list of the chain of command, and

8. an explanation of the organization’s purpose and strategic goals.

Highlights in HRM 3 shows the types of materials new hires can be given and the various steps that can ease their transition into the workplace. To be sure no materials are forgotten, companies often post orientation materials on their intranets and then provide new hires with passwords to access the sites.

Some organizations combine orientation programs with computer-based training. Macys cut its orientation training time in half this way, orienting 2,500 new employees in just 6 weeks. New hires at SumTotal Systems, an e-learning company based in Bellevue, Washington, go online for virtual tours of the company’s various departments with introductions to company leaders sprinkled throughout. Of course, these types of programs supplement—but do not replace—the value of face-to-face orientations.

Onboarding is the process of systematically socializing new employees to help them get “on board” with an organization. Onboarding goes beyond just orienting new employees to their new environment. It brings them into the organization’s fold so that they truly feel as if they are a part of it. This is important because new hires are at a high risk of quitting.

Highlights in HRM 2

Checklist for Orienting New Employees

Orientation Items

· Welcome information outlining the company background’s, corporate vision, and mission statement

· Map of the facility, including parking information

· Computer passwords, security cards, and parking decals

· Current organizational chart

· Information about where to find the firm’s corporate news, intranet sites, and bulletin boards

· Phone numbers, email addresses, and locations of key personnel and help desk personnel

· A copy of the employee’s specific job goals and job description

· Lists of unique terms in the industry, company, and job

· Training class schedules

· Safety and emergency procedures

· The organization’s policy handbook, including the firm’s EEOC policies, office hours, dress code, vacation, and email and Internet rules

· List of employee benefits, including insurance plans

· Holiday schedule

Follow-Up Activities

· Ensure that employee has completed the required paperwork, including benefit enrollment forms

· Revisit the employee’s performance standards

· Schedule the employee’s first performance appraisal meeting

Many new hires quit their jobs not because they can’t handle the job tasks but because they are going through culture shock within the new organization. When new employees quit soon after being hired, companies are then forced to begin recruiting, interviewing, and screening candidates all over again. The best recruiting and selection processes are therefore of little value if a firm is not able to retain the people it hires.

To help new hires avoid culture shock, some companies make videos and podcasts available to them before they even begin work. The mission and goals of an organization, a mini-tour of its facilities, and interviews with current employees talking about what they like about the organization are featured. Executives are often featured as well, which helps new hires develop an early understanding of who’s who in the organization.

In some firms, experienced coworkers serve as volunteer “sponsors,” or buddies, for incoming employees. In addition to providing them with practical help they are an important source of information about the culture of the organization, different workgroups, and what is expected of employees. These relationships help with the socialization of new employees and contribute significantly to their long-term success within the organization. PepsiCo has a buddy system for new hires. The company’s Barcelona unit created a YouTube video explaining where they need to go on their first day and what to expect. They also get a set of written information, and a box of PepsiCo chips and sodas as a welcome gift.

Southwest Airlines approaches onboarding as a welcoming party. “It was so much fun and so informative,” remarked one eager new employee after Southwest’s onboarding process. New employees always start on Fridays at CityMax.com, a build-your-own-website service in Vancouver, British Columbia. On Fridays, people are in a better mood, more relaxed, and are more willing to spend time getting to know new hires.

Highlights in HRM 3

Benchmarking HR Training

Measurement	How To Calculate
Percent of payroll spent on training	Total training expenditures ÷ total payroll
Training dollars spent per employee	Total training expenditures ÷ total employees served
Average training hours per employee	Total number of training hours (hours × participants) ÷ total employees trained
Percent of employees trained per year	Total number of employees receiving training ÷ total employee population
HRD staff per 1,000 employees	Number of human resource development staff ÷ total employee population × 1,000
Cost savings as a ratio of training	Total savings in scrap or waste ÷ dollars invested expenses in training
Profits per employee per year	Total yearly gross profits ÷ total number of employees
Training costs per student hour	Total costs of training ÷ total number of hours of training

7.5bBasic Skills Training

Remedial, or basic skills, training for adults has grown to be a full-blown educational industry on which businesses now spend billions of dollars annually. A report by the National Endowment for the Arts recently concluded that employers ranked the lack of reading and writing skills as the top deficiencies in new hires. Although literacy levels today are similar to what they were in 1970, the economy has changed drastically since then. Most U.S. workers today need to be able to read and analyze complex, often very technical material to succeed. Recently the Pew Research Center conducted a survey of young people between the ages of 18 and 34 and found that most of them felt they lacked the education and training to get ahead, a situation exacerbated by the high cost of college. “Jobs that don’t have much in the way of skills have moved out of the United States or are not living-wage jobs,” says Timothy Shanahan, a professor of urban education and reading at the University of Illinois at Chicago. The basic skills employees need in addition to reading, writing, and computing include speaking, listening, problem-solving, working in teams, and leading other people.

Smith & Wesson, Hewlett-Packard, Motorola, and the City of Phoenix instituted basic skills assessment programs to teach reading, math, and communication skills to employees who show some level of deficiency. Ford, Polaroid, United Technologies, and AT&T are among the many companies who now offer remedial courses to their employees, many of which are conducted in-house.

The National Institute for Literacy connects employers, learners, volunteers, social service providers, and others with literacy programs in all 50 states and U.S. territories. Employees and employers need only go to the institute’s online directory and type in their locations to find the literacy help centers nearest them. A number of states offer businesses tax credits for conducting remedial training (and other types of training) for their employees.

Recognizing that the skills gap is increasing, colleges and companies have begun teaming up to bridge the gap. For example, Pierce College, a 2-year college in California (which had previously concentrated on preparing students for 4-year colleges), now provides remedial instruction to employees at the offices of more than 30 companies in the San Fernando Valley area, where the college is located.

To implement a successful program in basic and remedial skills, managers should do the following:

1. Explain to employees why and how the training will help them in their jobs.

2. Relate the training to the employees’ goals.

3. Respect and consider participants’ experiences and use them as a resource.

4. Use a task-centered or problem-centered approach so that participants learn by doing.

5. Give employees feedback on their progress toward meeting their learning objectives.

7.5cTeam Training

As we discussed earlier in the book, organizations rely on teams to help them attain their strategic and operational goals. Whether the team is an aircrew, a research team, or a manufacturing or service unit, the contributions of the individual members of the team are not only a function of the KSAOs of each individual but also of the interaction of the team members. The teamwork behaviors of effective teams are shown in Figure 7.9. Team training focused on team roles, group dynamics, and problem-solving provides skills needed to function effectively as a team.

Figure 7.9Team Training Skills

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Games are often used in team training as is adventure-based learning. Adventure-based learning is the use of adventures, such as games, trust activities and problem-solving initiatives for the personal and social development of participants. Combine the TV shows The Amazing Race and Survivor with corporate training, and you will get an idea of what adventure-based learning is. Adventure-based learning is a type of experiential learning (learning by experience). Facebook, Google, Reebok, Coca-Cola, and Dell are among the companies that have utilized adventure-learning for team-building purposes.

AdVenture Games is a San Diego-based company that provides companies with adventure-based games. The games are designed to improve employees’ strategic leadership and creativity, among other things.

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iStock.com/BluIz60

How effective is the adventure-based learning method? It depends. “The most creative way to teach valuable lessons of leadership and communication is to engage employees in an unexpected activity that is carefully designed and backed by parallels to real-life situations,” says Chad Michael, the founder of AdVenture Games, a San Diego company that provides corporate training. “If the team building activity does not come with lessons learned and a creative way to instill valuable skill sets, the investment is no more effective than an afternoon at the park.”

7.5dCross-Training

Closely related to team training is cross-training . Cross-trained employees learn how to do different jobs within an organization as well as their own. Part of the motivation for cross-training is that it gives firms flexible capacity. Workers can be shifted when and where they are needed. Cross-training represents a shift from Henry Ford’s assembly line production to flexible production. Coca-Cola’s Fountain Manufacturing Operation (which makes the syrup for Coke and Diet Coke) developed team training for its manufacturing employees. The program focuses on three skill categories:

1. technical,

2. interpersonal, and

3. team action.

The technical component, called Four-Deep Training, requires each individual to learn four different jobs to allow for team flexibility.

Some companies have used cross-training to keep their workers and plants in the United States versus offshoring them. Pace Worldwide, a Maryland-based company that sells soldering equipment, watched all of its competitors move offshore. To compete with its low-cost rivals abroad, Pace grouped workers into teams and trained each team to build an entire product as well as different products. “Some of the people could only do certain things, and if they had no work, they would just sit and wait,” said one Pace manager. “Now they have ownership of it all.” Employees have an incentive to learn because their hourly wages get bumped up as they master more skills.

Now Pace builds products to meet actual customer demand rather than storing inventory, which is more costly, and it has been able to shorten its production times and move its operations into one building versus two.

By keeping workers interested and motivated, cross-training can cut turnover, increase productivity, pare down labor costs, and lay the foundation for careers rather than dead-end jobs. At Boston’s The Gourmet Pizza, employees begin cross-training their first day on the job. They cycle through every function in the back and front of the restaurant and then plot their own course. If they are interested in the bar, they have the opportunity to work there in various positions; those who want to become managers or franchise owners learn the entire operation, a process that takes 8 to 12 months. In addition to making them more productive, research shows that cross-training gives employees the “big picture,” making them more creative and better problem-solvers.

7.5eEthics Training

Ethics training became more prevalent in companies following a number of high-profile corporate scandals in the early 2000. Corporate scandals are, of course, not new to the twenty-first century. The most common forms of ethics violations, such as harassment, health and safety, and wage-and-hour violations, are related to employment laws.

Government contractors and subcontractors with contracts that last for 120 days or more and are more than $5 million are required by law to have business ethics codes and compliance policies and procedures. Other organizations are not legally required to. However, in the event of a violation, those that have “effective programs to prevent and detect violations of law” will face reduced penalties under U.S. federal sentencing guidelines.

Workers who are responsible for areas that expose them to ethical lapses are likely to require special training. Employees who do the purchasing for their firms are one example. Likewise, some firms offer special training to their overseas personnel who work in countries in which corruption and bribery are prevalent. (We will talk more about bribery in Chapter 15, which covers international topics.) Bringing in an outside expert trained in ethics or values-based management can be helpful as can surveying employees, managers, and sometimes even customers about what they believe the ethical state of their companies are and where improvements could be made. Other efforts a firm can take to ensure employees at all levels are behaving ethically and legally include establishing toll-free ethics hotlines and secure email addresses where employees can confidentially report violations they have noticed.

Some firms have chief ethics officers —high-ranking managers directly responsible for fostering the ethical climate within their firms and ensuring compliance. The Business Roundtable Institute for Corporate Ethics, the Ethics Resource Center, and Ethics & Compliance Officer Association are some additional sources human resource managers can turn to in order to develop ethics training programs. Keep in mind, however, that employees take their cues from top managers and mirror their behavior. If these people don’t behave ethically, no ethics training program within a company can be effective.

7.5fDiversity and Inclusion Training

Diversity training programs were designed in response to an increase in globalization, an awareness of the varied demographics of the workforce, challenges of affirmative action, dynamics of stereotyping, changing values of the workforce, and potential competitive payoffs from bringing different people together for a common purpose. There are basically three types of diversity training:

1. awareness building, which helps employees appreciate the benefits of diversity;

2. training to prevent discrimination, harassment, and associated lawsuits, which for some firms is a major reason why they conduct them; and

3. skill building, which provides employees with the KSAOs necessary for working with people who are different from them with regard to race, gender, and age.

The San Francisco 49ers football team underwent diversity training after Lindsey McLean, a retired gay trainer with the team, admitted publicly that he was gay and that he had endured taunts and humiliation from players at times during his 24 years with the 49ers. “We’re trying to create an environment where we can talk about these things and eliminate the problems and violence that can take place and help them understand that they can create an environment that people can work in, even if they are different,” said one 49ers manager.

The effectiveness of diversity training has come to be debated, however. A comprehensive review of 31 years of data from 830 midsize to large U.S. workplaces found that following diversity training even fewer minorities and women were being promoted into management at firms. But that does not necessarily mean that diversity training in and of itself has led to fewer promotions for women and minorities. Moreover, not all diversity training was ineffective, the review found. Rather, it showed that mandatory programs—solely avoiding liability in discrimination lawsuits—were the problem. When diversity training is voluntary and undertaken to increase awareness of the problem and advance a company’s business goals, it can be quite effective. This is one of the reasons why companies are increasingly focusing on inclusion. An inclusive workplace is one in which people are treated fairly and with respect, and are supported and encouraged to participate in all aspects of the organization.

7.6Phase 4: Evaluating the Training Program

How can you figure out whether the training program you conducted was successful? A variety of methods are available to assess the extent to which a firm’s training programs improve learning, affect behavior on the job, and impact the bottom-line performance of an organization. Figure 7.10 shows that four basic criteria are available to evaluate training:

1. reactions,

2. learning,

3. behavior, and

4. results.

Some of these criteria are easier to measure than others, but each is important in that it provides different information about the success of the training. The combination of these criteria can give a total picture of a training program to help managers decide where problem areas lie, what to change about the program, and whether to continue it.

Figure 7.10Criteria for Evaluating Training

The space between two concentric circles has been divided into 4 equal segments. The segments represent reactions, learning, results, and behavior. Each segment has a double-sided arrow pointing towards the segment on either sides.

7.6aCriterion 1: Reactions

One of the simplest approaches to evaluating a training program is to assess participants’ reactions to it. In addition to indicating whether they enjoyed the training, they can give insights into the content and techniques they found most useful. They can critique the instructors, suggest ways to improve the training, and indicate whether or not it should be continued.

However, positive reactions to a training session are no guarantee it has been successful. It may be easy to collect glowing comments from trainees, but as gratifying as this information is, it may not be useful to the organization unless it translates into tangible, improved on-the-job performance based on the firm’s strategic goals. Reaction measures should not stop with assessing the training’s entertainment value.

7.6bCriterion 2: Learning

Beyond what participants think about the training, did they actually learn anything? Testing the knowledge and skills of trainees before and after a training program will help determine their improvement. The skill and knowledge levels of employees who have undergone a training program can also be compared to employees who have not. Federal Express took this approach. The company studied 20 van drivers who attended a weeklong new hire training program. The company then compared the performance of these drivers with a control group of 20 drivers who had received only OTJ training. FedEx found that the drivers who had been formally trained made fewer package processing errors, saving the company about $500 per trained driver.

7.6cCriterion 3: Behavior

The transfer of training refers to how well employees apply what they have learned to their jobs. There are several ways to assess the transfer of learned skills back to the job. At Xerox, trainers observe trainees once they return to their regular positions, interview the trainees’ managers about their progress later on, and examine their post-training performance appraisals.

You might be surprised to learn that much of what is learned in a training program never gets used back on the job. To maximize the transfer of training, managers and trainers can take several approaches:

1. Feature identical elements. Have conditions in the training program come as close as possible to those on the job. For example, instead of verbally explaining a manufacturing process, it is better to demonstrate it on a factory floor.

2. Focus on general principles, if necessary. When jobs change or the work environment cannot be matched exactly, trainers often stress the general principles behind the training rather than focusing on rote behavior. This approach helps trainees learn how to apply the main learning points to varying conditions on the job.

3. Establish a climate for transfer. In some cases, trained behavior is not implemented because old approaches and routines are still reinforced by people within the organization. To prevent this kind of problem, firms need to encourage their managers to embrace the strategic changes their organizations are seeking to implement and reinforce and reward trainees for applying the new skills or knowledge.

4. Give employees transfer strategies. Particularly in settings that are not conducive to transfer, managers should provide trainees with strategies and tactics for dealing with their transfer environment. One approach, called relapse prevention (RP), teaches individuals how to anticipate and cope with the inevitable setbacks they will encounter back on the job—that is, a relapse into former behaviors.

7.6dCriterion 4: Results, or Return on Investment (ROI)

Human resource managers are under pressure from top managers to show that their training programs produce bottom-line results. Most organizations today measure their training in terms of its return on investment (ROI), which is also sometimes referred to as the utility the firm gets for its training dollars. A company’s ROI refers to the benefits it derives from training compared to what it costs.

The benefits can include higher revenues generated, increased productivity, improved quality, lower costs, more satisfied customers, higher job satisfaction, lower employee turnover, and greater innovation. To put a dollar value on these benefits, HR managers use various types of data such as sales data, human resources and financial data, and employee survey and control group data gathered from various sources within the organization.

To put a dollar value on the firm’s training costs, the company calculates the direct costs of the programs (materials, software, employee travel and meals, meeting site costs, equipment, trainers’ salaries or fees, etc.) as well as the indirect costs of the programs (participants’ salaries and the productivity they lose while they are attending the training).

Recall that benchmarking is the practice of comparing data and statistics from your operations, such as training, against those of recognized leaders in your industry. The American Society of Training has developed training benchmarks from hundreds of different companies to which other firms can compare the data on their training costs, staffing, administration, design, development, and delivery of training programs. Benchmarks such as these can help organizations evaluate their current and future training programs. Highlights in HRM 3 shows several aspects of training that can be benchmarked.

As e-learning continues to change training, the benchmarks for it are changing as well. Measures such as the extent to which learning content has been accessed, downloaded, and the ratings given it by users are likely to become new measures of how well a firm’s training programs are working.

Some HR experts think managers can get overly preoccupied with ROI calculations and benchmarking. Why? Because often the benefits of training can be intangible or take a long time to appear. Measuring participants’ reactions can be done immediately, of course. However, measuring improved employee skills, customer satisfaction, and so forth can take somewhat longer, and factors other than training can also affect these measures. Finally, the development of groundbreaking new products or processes can also be sparked by training but take years to develop, making them hard to attribute to training. Developments such as these nonetheless can transform organizations.

The key to improving a training program’s effectiveness is continually evaluating it. The information generated by the evaluations then feeds back into Phase 1 of the training process, as shown in Figure 7.1. By tying the training closely to key performance metrics and then measuring the training’s impact against them, a firm will be in a better position to improve its programs over time.

Apply What You Learned: Team Training Skills

Complete the following activity.

Chapter Review

Summary

· LO 1The types of training given employees range from simple, on-the-job instruction to sophisticated skills training conducted on multimillion-dollar simulators. Training programs cover a broad range of subjects and involve personnel at all levels. The goal of training is to contribute to an organization’s overall strategic goals. To be effective, training programs need to be developed systematically. This approach consists of four phases:

· •needs assessment

· •program design

· •implementation

· •evaluation

· LO 2The needs assessment phase begins with an organization analysis. Managers must establish a context for training by deciding where training is needed, how it connects with their firms’ strategic goals, and how their companies’ resources can best be used in terms of training. A task analysis is used to identify the knowledge, skills, and abilities employees need. A person analysis is used to identify which people need training.

· LO 3When designing a training program, managers need to consider the two preconditions for learning: the readiness and motivation of trainees. In addition, the principles of learning should be considered to create an environment that is conducive to learning. These principles include goal setting, the meaningfulness of presentation, modeling, individual differences, active practice and repetition, experiential learning, whole-versus-part learning, massed, distributed, and continuous learning, and feedback and reinforcement.

· LO 4A wide variety of methods are available to train personnel. On-the-job training is one of the most commonly used methods. Apprenticeship training and internships are especially effective. On-the-job experiences include coaching, understudy assignments, job rotation, lateral transfers, project and committee assignments, and staff meetings. Off-the-job experiences include analysis of case studies, role-playing, and behavior modeling.

· Classroom training is still the most popular way to train employees. However, e-learning methods, such as simulations, games, just-in-time learning, microlearning, and social media are rapidly becoming more popular. Using multiple methods, or what is called blended learning, has been found to be most effective.

· LO 5Employers develop different training programs for various purposes. Orientation training allows new hires to more quickly acquire the knowledge, skills, and attitudes that increase the probabilities of their success within the organization. Onboarding programs help new hires feel like they truly are a part of a firm. This is important because new hires are at a high risk of quitting. Basic skills training, team and cross-training, ethics training, and diversity training are other programs commonly conducted by organizations.

· LO 6The effectiveness of training can be evaluated on several criteria: participants’ reactions, the amount of learning they have acquired, their behavioral changes on the job, and bottom-line results such as the program’s return on investment. The transfer of training is measured via examination of the degree to which trained skills are demonstrated back on the job. Benchmarking and utility analysis help evaluate the impact of training and provide the information for further needs assessment.

Chapter Review

Key Terms

· adventure-based learning

· apprenticeship training

· behavior modeling

· behavior modification

· blended learning

· chief ethics officer

· chief learning officers

· competency assessment

· cooperative training

· cross-training

· e-learning

· experiential learning

· instructional objectives

· just-in-time training

· learning management system (LMS)

· microlearning

· on-the-job training (OJT)

· onboarding

· organization analysis

· orientation

· person analysis

· spot rewards

· task analysis

· transfer of training

Chapter Review

Discussion Questions

· LO 1What economic, social, and political forces have made employee training even more important today than it was in the past?

· LO 2What analyses should be done to determine the training needs of an organization? After the needs are determined, what is the next step?

· LO 3Which principles of learning do you see demonstrated in your own classes? In what ways might you bring other principles into them?

· LO 4Suppose that you are the manager of an accounts receivable unit in a large company. You are switching to a new system of billing and record-keeping and need to train your three supervisors and 28 employees in the new procedures. What training method(s) would you use? Why?

· LO 5Participants in a training course are often asked to evaluate the course by means of a questionnaire. What are the pros and cons of this approach? Are there better ways of evaluating a course?

HRM Experience

HRM Experience

Training and Learning Principles

Even though it is not difficult to do so, a surprising number of training programs don’t explicitly incorporate the principles of learning (goal setting, modeling, individual differences, and feedback). To prove incorporating them is not difficult to do, complete the following assignment for building a paper airplane.

Assignment

1. Form teams of four to six members. Identify someone on the team who knows how to make a paper airplane. That person will be the trainer.

2. Identify someone who will be the observer/recorder. That person will not participate in the training but will write down how many (and how effectively) principles of learning are used in the instruction:

1. Goal setting

2. Modeling

3. Meaningfulness

4. Individual differences

5. Whole versus part learning

6. Mass versus distributed learning

7. Active practice

8. Feedback

9. Experiential learning

3. Give the trainer 10 to 15 minutes to train the group in making a paper airplane. The observer/recorder will keep notes of effective and ineffective training techniques (demonstrated learning principles).

4. Have someone from each team—not the trainer—volunteer to come before the class for a friendly competition. The instructor will give each team member 2 minutes to make a paper airplane. Then, just for fun, they can compete by seeing which one flies the farthest. (No wagering, please.)

5. To finish the exercise, the observers/recorders will lead a discussion of the learning principles that were demonstrated. If the principles were incorporated for this activity, discuss why they might not be incorporated in other training settings.

Chapter Review

Case Study 1

Case Study 1

Whirlpool Mixes Up Its Managerial Training: Closed-Looped Method Brings Learning Full Circle

Most Americans are familiar with Whirlpool. Whirlpool, which is based in Benton Harbor, Michigan, and has been in business for more than century, is perhaps best known for the washers and dryers it makes. But the company also makes refrigerators, freezers, and cooking appliances that it sells under various other brand names around the world (Amana, Maytag, KitchenAid, and Roper are some of them).

During the last economic recession appliance sales plummeted, and Whirlpool was forced to lay off thousands of workers. Although budgets were being slashed, Whirlpool needed to develop managers who could lead the company through the downturn as well as provide training that would have a measurable impact at a lower cost.

Previously Whirlpool University, the company’s 100-acre learning division located at its corporate headquarters, had used mainly classroom learning. The university now has a learning management system and conducts online training. A series of 30-minute modules are used to help familiarize and onboard new hires. In addition, Whirlpool now takes a “closed-loop” approach to training. Instead of just doing popular types of training other companies were doing, it surveys managers to find out what types of training Whirlpool truly needed and what types it didn’t and then designs training programs based on those specific needs.

Because they are central to the training and development of their employees and in the best position to observe and coach rank-and-file employees, to train managers, Whirlpool utilizes a 12-month-long intermittent training program called Leading People. The program consists of blended learning, including prework modules managers do online, followed by classroom training, business projects, and seminars with top managers. A manager’s direct reports provide an initial baseline assessment of his or her skills, and then the manager is assessed again following the training. James Crawford, in Whirlpool’s Chicago division, said the training helped him become a better leader. “It helped me pinpoint weak spots in my leadership practices and then gave me a strategy for turning those weaknesses into strengths,” Crawford says. The managers are later surveyed as to how well the training is working and what can be done to improve it. In other words, there is a feedback system in place, hence the “closed-loop” moniker. That way, the design, delivery, and redesign of the training is a continuous circle and constantly being improved over time.

The closed-loop feedback system has helped Whirlpool continue to assess and alter its training to adapt to new conditions. For example, today Whirlpool isn’t laying off employees; it’s trying to hire more of them as its older workers retire. To attract millennials, the company has partnered with high school and colleges to offer an onsite apprenticeship program called “Work, Earn, and Learn.” In 2017, Whirlpool’s CEO, Jeff Fettig, was one of a number of corporate executives who met with President Donald Trump to talk about saving American jobs and encourage the support of vocational training for the high-tech skills manufacturers today need. “The jobs are there, but the skills are not,” said one executive at the meeting.

Questions

1. Why are a needs assessment and ongoing training important for firms like Whirlpool to conduct?

2. How do you think Whirlpool’s training strategy will need to change in the future?

Source: Greg Sowinski, “Manufacturers Prep to Replace Retiring Workforce,” LimaOhio.com (March 5, 2017), http://limaohio.com; Christopher S. Rugaber, “U.S. Factory CEOs to Trump: Jobs Exist; Skills Don’t,” Chicago Tribune (February 24, 2017), http://www.chicagotribune.com; Garry Kranz, “Whirlpool Adopts E-Learning for Leadership,” Workforce (November 14, 2012), http://www.workforce.com; Tamara Patrick, “Unleashing a Learning Partnership with Managers,” ATD (August 16, 2012), http://www.astd.org; Tamara Patrick, “Whirlpool University Re-Invents in the Face of the Recession,” Management Innovation Exchange (September 16, 2011), http://www.managementexchange.com.

Chapter Review

Case Study 2

Case Study 2

Loews Hotels: Training for Four-Diamond Service and More

Most people expect to receive great service at four-diamond hotels. But that’s not good enough for Loews. The New York–based hotel chain, which has properties in 16 cities across the United States and Canada, tries to “wow” every one of its guests with high-quality accommodations, impressive surroundings, personalized service, and thoughtful amenities for a luxurious experience.

A key element of success at Loews is the extensive training it provides its employees. Whether they work at the front desk, as housekeepers, accountants, or marketing managers, they learn about the big-picture goals of the company and how the quality of service differentiates one company from another in the hotel business. “The key is to train all departments of your organization to be customer-centric,” says Jon Tisch, the company’s co-chairman. “Thinking about customers can’t be left to marketing and sales alone. Manufacturing, R&D, strategy, management, all have to be focused on the needs and desires of the customer.”

Customer-facing employees at Loews undergo classroom training, including role-playing and simulations to learn how to deal with customers. “Living Loews,” a 2-day training program, teaches employees not only the finer points of etiquette but how to really sell the Loews experience—even when things go wrong. “We’re all human, so mistakes can happen,” Tisch explains. “But when they do, we train our coworkers to impress our guests with an extraordinary recovery that we hope they’ll remember even more.”

Training sessions such as “Green” training, “Loews Meeting Experience,” “Loews Pool Concierge” program, “Spa 101,” and the “YouFirst” guest loyalty program ensure that customers of all types who use the hotel’s various services get top-notch service.

The training does not end with the sessions, though. Once it is over, training managers go out on the front lines to do spot checks and offer feedback to employees to make sure the training really “sticks.” A train-the-trainer program and other managerial workshops such as “Communicating Loews” help managers promote the hotel brand and inspire their employees to do so as well. A comprehensive executive training program covers topics ranging from communication and salesmanship to public speaking and presentation skills.

Loews also tries to “grow” its own talent. Most training managers, for example, are promoted from line-level jobs or from operations, so they know the company’s processes and culture firsthand. The company also has a tuition assistance program.

To recruit undergraduates, Loews offers paid summer internships. Interns work in a variety of areas such as the rooms division, food and beverage department, sales and marketing, and human resources. Each intern is assigned a mentor and given opportunities to network by attending operational meetings. At the conclusion of their internships they complete a report on their experience. Successive year internships give them exposure to additional functional areas, project work, supervisory experience, and ultimately the opportunity to join the company’s management training program.

So successful is the training at Loews that even trainers are impressed. Douglas Kennedy, the founder and president of the Kennedy Training Network, which specializes in hospitality training, says he was knocked out by his experience while conducting training at Loews’s various properties. Kennedy says he’s gotten very spoiled during his overnight stays at Loews hotels: “I’m sure it will be a rude awakening next month when I return to staying in more typical upscale hotels.”

Questions

1. How do the training programs at Loews relate to the company’s business strategy?

2. Why does the company encourage its employees to focus on the customers’ needs versus other metrics?

Sources: Amy Bertrand, “Luxury Hotel Trends to Watch,” St. Louis Today (February 4, 2014), http://www.stltoday.com; Jill Busch “Training Reveals Rankings for 2011 Top 125,” Training Magazine (February 8, 2011), http://www.trainingmag.com; Ann LaGreca, “Loews Hotels CEO Jonathan Tisch on the Essence of Customer Service: Experience, Service and Quality,” Knowledge@Emory (July 11, 2007), http://knowledge.emory.edu; “Loews Hotels Named Among ‘Top 125’ by Training Magazine,” Hotel and Motel Management (March 9, 2009), http://www.hospitalityworldnetwork.com; Holly Dolezalek, “We Train to Please” Training 45, no. 3 (March–April 2008): 34–35.