Week 4 Discussion 2 - HR MGMT- Due by tomorrow at 8pm CST

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The Role of Needs Analysis in Training and Development

What is a training need? DiSimone, Werner, and Harris (2002) describe a need as “a discrepancy or gap between what an organization expects to happen and what actually occurs. …Identified needs in this sense focus on correcting substandard performance” (p. 129). Not all performance needs can be resolved through training. Many needs may be the result of obstacles in the work setting, lack of effective communication, lack of clarity in expectations, a job design issue, a compensation and reward matter, or even possibly a lack of fit with the job requirements. Other factors involved with identifying training needs are democratic choice of employees and managers, diagnostic factors that lead to effective performance and prevent performance problems, and finally, analytic factors that identify new, better ways to perform tasks (DiSimone, Werner, & Harris, 2002).

Needs analysis helps to ensure that the human resource development (HRD) efforts are focused on the improvement of organizational performance (DiSimone et al., 2002). With this perspective, needs analysis may be conducted at three levels in the organization: (a) strategic/organizational analysis suggests where and under what conditions training is needed, (b) “task analysis explains what must be done to perform a job or complete a process successfully,” and (c) person analysis centers on who and what kind of training is necessary (DiSimone et al., 2002, p. 131).

Every organization has training needs, but how those needs are addressed is a strategic decision. “A few exemplary organizations … view a workforce with superior skills as a primary source of sustainable competitive advantage. In these organizations, training and development [T&D] becomes the critical means for creating readiness and flexibility for change across all organizational levels, and there are strong linkages between all facets of the T&D system and the strategic leadership and planning processes of the business” (Olian et al., 2002, p. 286). Twenty-six benchmark organizations in T&D responded as part of a study (1998) from winners of Malcolm Baldrige National Quality Award, Fortune Magazine’s “Top 20 Managed Companies,” American Society of Training and Development’s “Corporate Award,” Training Magazine’s “Readers’ Survey Award” and were identified by other subject matter experts (Olian et al., 2002).

Benchmarking organizations tie in the changing needs of the business units or organizational components by annually reviewing the T&D goals and processes and how they integrate into the strategic planning process. “Procter & Gamble’s (P&G) executives demonstrate the significance they attach to internal development through their personal involvement. …Members of the executive committee teach at P&G College whenever they are physically nearby” (Olian et al., 2002, p. 288). Recently, A. G. Lafley, chief executive of Procter & Gamble Co., moved executive vice presidents’ offices from the executive suite to be

located with their own departments and made the newly vacant space into a training center (Berner, 2003, Jul 7).

In order to support T&D systems, benchmark organizations implement policies as a “formal means of communicating T&D expectations, and value statements, [as a] more informal and decentralized means of pushing managers to develop attitudes toward T&D that are aligned with the business strategy” (Olian et al., 2002, p. 288). Policy “rules address matters such as budget allocation for T&D, required levels or hours of T&D participation, or required T&D before or after promotion.” … Values statements include statements such as, “every manager is held accountable for the development of his/her employees” (pp. 288–289). Managers begin to internalize the T&D process when their own rewards and promotions are at stake.

The role of needs analysis rests upon four factors in many of these benchmark companies: (a) organization’s mission and strategy, (b) individual performance factors, (c) environmental trends, and (d) job-based information. Interestingly, the primary weight of the needs assessment is on information collected from the top division managers and senior executives on “their views of the skills that will be needed to achieve strategic short-term and long-term goals” (Olian et al., 2002, p. 290). They engage in environmental scanning to keep abreast of changing market trends and requirements. “In these companies, however, environmental demands drive adjustments to the business strategy, with T&D changes implemented as a result of decisions to modify the business strategy” (p. 290).

The benchmarks provide insight to how the best and most successful organizations view training and development and use needs analysis. The practices of the not-so-successful are very different. Greer reports that, “training programs often focus on mid- to upper-level managers and do not place much emphasis on lower-level employees” (2001, p. 240). There is a need at the lower levels of the organization for basic skills training. As the workforce demographics change there are more entry-level employees who need skill development in basic reading, writing, and arithmetic. Some will have English as a second language. They are intelligent, hard working, and dedicated employees who need help to perform their jobs more effectively. Without a needs analysis, an organization might overlook this important area.

According to Greer, “The extent to which companies provide training over time also is irregular. During good economic times, many corporations invest heavily in the training of their employees. … When economic activity wanes many companies slash their training outlays. … Companies that conduct training on a ‘boom-and-bust’ basis are unlikely to develop the kinds of human resources they need to gain competitive advantage” (Greer, 2001, pp. 240–241).

Salient reasons for taking time to conduct needs analysis include the need to identify skill deficiencies and determine those employees who do not need

training. Training is costly, not just because of the materials and curriculum, but because of the time lost from the job for employees sitting in a classroom. For that reason, it makes sense to conduct training only for those who actually need the information or skills. Needs analysis also helps with identifying the specific steps within skill areas that are needed, rather than take a “shotgun” approach. “Although systematic assessment of formal training would seem prudent,” in a recent study “only 27 percent of the responding companies reported having needs assessment procedures. However, needs assessment and company size were significantly correlated as larger companies were more likely to have needs assessment procedures” (Greer, 2001, p. 247). Why are companies not using needs assessment?

Recently, respected individuals in the industry have been very vocal in criticizing the instructional systems design (ISD) approach that has been widely accepted and used for decades.

According to Gordon and Zemke, “Four main charges or complaints are raised concerning the model:

1. The model is too slow and clumsy to meet today’s training needs. 2. [“As a ‘process’ model … it focuses on the process by which effective

training can take place versus on solving the problem that training was designed to address”].

3. Used as directed, it produces bad results. 4. It clings to the wrong world view” (DeSimone et al., 2002, p. 156).

There are times when doing a full-blown needs assessment is not feasible. If it takes six months to conduct the needs assessment, the opportunity for which the training was needed may be passed.

Asgar offers the following questions to assist trainers in identifying important issues, even when it may not be possible to conduct … [needs assessment]:

1. What are the operating problems? (Don’t ask, what is the training need?) 2. Are the operating problems caused or contributed to by human behavior?

If yes, describe the present behavior and the desire performance. 3. Could the employees perform correctly if they had to? Have they recently

performed the task correctly? 4. Is the employees’ manager currently requiring the desired performance

from employees? If not, what assurance do you have that the new behavior will be reinforced on the job after training has been completed?

5. What evidence shows that the present performance is a problem? What would be some observable signs that the problem has been solved (e.g., observing employees using particular skills)?

6. What other issues might be contributing to this operating problem?

7. Based on this analysis, is training needed? If yes, what skills should be learned?

8. If training is needed, will managers commit themselves to active involvement in the training process before, during, and after the training? (DeSimone et al., 2002, p. 157).

References

Berner, R. (2003, Jul 7). P&G: New and improved: How A. G. Lafley is revolutionizing a bastion of corporate conservatism. Business Week Online. Retrieved from http://www.businessweek.com

DeSimone, R. L., Werner, J. M., & Harris, D. M. (2002). Human resource development. (3rd ed.). Mason, OH: Thomson South-Western.

Greer, C. R. (2001). Strategic human resource management: A general managerial approach. (2nd ed.). Upper Saddle River, NJ: Prentice Hall.

Olian, J. D., Durham, C. C., Kristof, A. L., Brown, K. G., Pierce, R. M., & Kunder, L. (2002). Designing management training and development for competitive advantage: Lessons from the best. In Jeffrey A. Mello. Strategic human resource management. (pp. 286–296). Cincinnati, OH: Thomson South- Western.