Week 1 Assignment HRM635

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saks8e_ppts_ch01_final.pptx

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PowerPoint Presentation for Managing Performance through Training and Development

Adapted by

Alan Saks

University of Toronto

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Chapter 1

The Training and Development Process

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Learning Outcomes

After reading this chapter, you should be able to:

Explain the differences between performance management, training, and development and how they are related

Discuss the role of training and development in the performance management process

Explain how training and development benefits organizations, employees, and society

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Learning Outcomes

Explain why some organizations invest more than others in training and development

Discuss the context of training and development and the relationships between the different factors

Explain the instructional systems design (ISD) model of training and development and its implications for the training and development process

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Introduction

Training and development (T&D) is important to employees, organizations, and customers/clients

Many serious incidents are caused by a lack of training, which costs lives and money

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Value of training and development (T&D) cannot be underestimated as it is of vital importance to employees, organizations, and, for example, those of us who use public transport and purchase goods and services every day of our lives

Introduction

Success is dependent upon T&D

T&D a key factor in creativity, innovation, and transfer of knowledge

T&D provides a sound return on investment (ROI)

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Success and competitiveness are highly dependent upon sound T&D; it is critical to organizational performance

T&D is a key factor in creativity, innovation, and transfer of knowledge, and is part of the defining factors of best companies to work for in Canada

It is a sound investment with a return on investment (ROI)

Performance Management

Performance management is the process of establishing performance goals and designing interventions and programs to motivate and develop employees to improve their performance

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The process signals what is really important to an organization, ensures accountability for behaviour and results, and helps to improve performance

The Performance Management (PM) Process

PM involves activities and programs to develop employees and improve performance

Establishing or reestablishing performance goals and expectations—performance goals should be SMART

Monitoring employee performance and providing feedback

Performance evaluation with consequences

Employee development plans are critical

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It is not a single event; it is a comprehensive process involving activities and programs designed to develop employees and improve their performance

- Establishing or reestablishing performance goals and expectations (performance goals should be SMART: specific, measurable, attainable, relevant, with a time frame)

- Monitoring employee performance and providing feedback

- Performance evaluation with consequences

Employee development plans are critical in this process

The Performance Management Process

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Performance goals should be clear to employees (SMART)

Managers should monitor performance and provide ongoing feedback

Formal performance evaluation should involve an appraisal process and performance consequences to reward employees for accomplishing goals and reinforce employee behaviour and performance

Employee development through training and development (including a development plan) can include formal programs as well as on-the-job training such as coaching and mentoring

Training and Development (T&D)

Training is formal and planned efforts that allow employees to acquire knowledge, skills, and abilities (KSAs) to improve performance in their current job (short-term focus)

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An example of training would be sending an employee to a workshop to learn a new software package or to better serve customers

Training and Development (T&D)

Development is formal and planned efforts to help employees acquire KSAs required to perform future job responsibilities, i.e., career goals and organizational objectives (longer-term focus)

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An example of development might be sending an employee to a leadership development program to prepare the employee for future responsibility as a manager

Training and Development (T&D)

The primary objective of training and development is to develop and maximize an organization’s human capital

Training and development can also facilitate the development of social capital

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An example of development might be sending an employee to a leadership development program to prepare the employee for future responsibility as a manager

T&D Benefits

To organizations

To employees

To society

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Organizations that invest in the T&D of their employees reap benefits, as do the employees and the society in which they live

T&D plays a critical role in the success and well-being of organizations, workers, and society

T&D Benefits—Organizational

Strategy: training employees to have knowledge and skills to help achieve organizational goals and objectives

Effectiveness: increases competitive advantage

Employee recruitment, engagement, and retention: attracts, engages, and helps keep top talent

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STRATEGY: the goal of all organizations is to survive and prosper. By linking training to an organization’s strategy, training becomes a strategic activity that operates with other programs and activities to achieve an organization's strategic business objectives

EFFECTIVENESS: Trained employees can do more and work more effectively with fewer errors, require less supervision, have a more positive attitude, and have lower rates of attrition. The link between training and organizational performance is strongly supported by research

EMPLOYEE RECRUITMENT AND RETENTION: It helps attract and retain talent. It is used by employers to increase their attractiveness to prospective employees and retain current employees

T&D Benefits—Employees

Intrinsic (internal)

Improved knowledge and skills

Confidence or self-efficacy

Feelings of increased usefulness

Increased sense of belonging

Positive attitudes toward their job and organization

Extrinsic (external)

Higher earnings

Improved marketability

Greater security of employment

Enhanced opportunity for advancement and promotion

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Intrinsic benefits are internal to an individual, such as knowledge and attitudes

Extrinsic benefits are those external to an individual, such as salary

T&D Benefits—Societal

Educated and employed population

Health and safety

Economy and standard of living

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- Educated and employed population: for example, some organizations offer literacy and numeracy training for those who didn’t obtain it through the school system but need it to perform their jobs

- Health and safety: improved safety can save people’s lives and improve the safety of employees and the public

- Economy and standard of living: improving and investing in the knowledge and skills of the workforce is one way to improve productivity

T&D in Canada

Just over half of workers (56 percent) have access to employer-sponsored training; 44 percent have no access

Part-time, temporary workers and those less educated and older are less likely to receive training; as well as those employed in small- and medium-sized organizations

Less than half (47 percent) of Canadian organizations provide training to their employees

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Canada spends 64 cents compared to every dollar the U.S. spends

Varies across sectors in Canada; tech and communications sectors spend more

Traditional sectors spend less

Average number of hours per employee dropped from 28 in 2008 to 25 in 2010

T&D in Canada

Canadian organizations have underinvested in T&D but latest findings indicate a positive and progressive trend

A steady and gradual increase in direct investments in T&D: ($889 per employee in 2017 compared with $800 in 2015)

Average number of hours of training: (32 hours per employee in 2017 compared with 31 in 2015)

Canadian organizations continue to invest less than organizations in the U.S. but the gap has narrowed

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2006: Canada ranked 21st in T&D spending

2002: Canada ranked 12th in T&D spending

Underinvestment may lead to a gap in essential skills to remain competitive in today’s global marketplace

Must increase spending; look at it not as an expense, but as an investment

T&D: Investment or Expense?

Organizations that DO invest:

View training as an investment

Expect direct benefits and an ROI

See T&D as strategic and a driver of success

Some invest heavily; 1 in 5 spend more than 3 percent of payroll in training

What can be done to increase training investments in Canadian organizations?

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Learning and training are not considered a high priority in Canadian organizations

Perception exists that training, learning, and development represents a cost or expense rather than an investment

Organizations that view training as a cost limit their training to what is required by law or necessary to survive; often training is one of the first things to be cut when budgets become tight

The financial sector, however, is an example of an industry that invests heavily, spending hundreds of millions annually in T&D

Quebec Training Law

In Quebec, the Act to Foster the Development of Manpower Training (Bill 90) passed in 1995—“1 percent” or “training law”

Only payroll training tax in North America; companies with payrolls of $1 million or more must invest a minimum of 1 percent of their payroll on government-sanctioned training, or pay into a provincial fund for workforce training

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In Quebec, the Act to Foster the Development of Manpower Training (Bill 90) passed in 1995: “1 percent” or “training law”

Represents the only payroll training tax in North America, whereby companies with payrolls of $1 million or more must invest a minimum of 1 percent of their payroll on government-sanctioned training or pay into a provincial fund for workforce training

This law has changed the way firms structure, organize, and deliver training

It has resulted in substantial growth in adult learning and training over the past two decades

Training Bond

A contract between the employer and employee that states that the employer will pay for the employee’s training as long as the employee remains with the organization for a minimum period of time following completion of the training program

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T&D Context

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Environmental factors influence the organizational context and all HRMS practices

Training and development is an important component of the HR system, which drives both individual performance and organizational effectiveness

T&D Context

Environmental context

Global competition

Technology

Labour market

Environmental change

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Global competition: increasing global competition has forced organizations to improve their productivity and the quality of their goods and services. These improvements require employees to learn new skills. When workers go on international assignments, they need to be provided with cross-cultural training

Technology: has had a profound effect on how organizations operate and compete. New technology requires training to exploit the technology

Labour market: Changes in the labour market affect T&D. It has been estimated that there will be a critical shortage of skilled workers by 2013 and that there is a significant skills mismatch. To respond, the country will need to change its approach to education and training

Organizational change: To remain competitive organizations have to adapt and change; therefore, managing change is a normal part of organizational life. Training programs on the change process as well as training that is part of the change program

T&D Context

Organizational context

Strategy

Strategic human resource management (SHRM)

Strategic training and development (ST&D)

Structure

Culture

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Strategy: organizations with a greater alignment between HR (including T&D) and their strategies have superior performance; strategic T&D refers to the alignment of an organization’s training needs and programs with an organization's strategy and objectives

Structure: organizations are becoming increasingly flatter with fewer layers of management; tasks once considered managerial tasks are now performed by employees, which necessitates the need for training

Culture: shared beliefs and values determine the norms within an organization and expected behaviours; often communicated through training programs

Strategic Model of T&D

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This is a scientific and rational process with three major steps: needs analysis, design, and delivery and evaluation

T&D Context

Human resources system

HR planning

Job analysis

Compensation

Recruitment

Selection

Performance appraisal

Health and safety

Labour relations

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HR systems and functions influence T&D

HR practices should be linked to business strategy and to one another

The entire system should be linked and aligned

T&D Context

The human resources system

Strategic HR management involves linkages to business strategy and to one another to achieve organization’s strategy

These practices form an integrated HR system known as a high-performance work system (HPWS)

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T&D Context

HPWS is an integrated system of human resources practices and policies

Includes recruitment and selection procedures, performance-contingent incentive compensation, performance management, a commitment to employee involvement, and T&D programs

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Instructional Systems Design Model

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Instructional Systems Design Model

Rational and scientific model of T&D process consists of three major overlapping steps that starts with performance gap or problem:

Training needs analysis

Training design and delivery

Training evaluation

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Begins with a performance gap (for example, customer complaints) or problem

Needs assessment through organizational analysis, task analysis, and person analysis helps to determine information about the problem with strategies identified for closing the gap

If training is the solution, a number of factors need to be considered in terms of the design and delivery of the training program, including writing objectives and determining the content of the training program

After delivery, training evaluation looks at determining whether the program is effective and what aspects of the program should be retained, modified, or discarded

The ISD model guides strategic T&D process (and the rest of this course)

Summary

Introduced the T&D process and importance T&D plays in organizations and performance management

Explained the benefits of T&D for organizations, employees, and society

Examined how T&D is embedded in environmental and organizational context and is part of the human resources system

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Summary

Discussed the state of training and development in Canada and challenges faced related to skill development and productivity

Illustrated that for training effectiveness it should be aligned with the organization’s business strategies and other HR practices, and be a part of an HPWS

Introduced the instructional systems design (ISD) model

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Key Terms

ADDIE

Development

High-performance work system (HPWS)

Human capital

Instructional systems design (ISD) model

Organizational culture

Performance management

Skills mismatch

SMART goals

Social capital

Strategic human resource management (SHRM)

Strategic training and development (ST&D)

Strategy

Training

Training bond

Work engagement

Work-integrated learning

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