MGT 430 – Spring 2016
Class 10 – Chapter 8
TRAINING
TRAINING AND DEVELOPMENT
• Why do we train
• What do we train
• How do we train
• What’s the payoff
Why Do We Train And Develop Our People?
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Meet regulatory requirements of government and industry
Bridge the gap between minimum and maximum job performance
Promote safety & security & sensitivity & peace & love & harmony & …
Certification - Licensing
Develop additional value-adding skills relative to your organization
Develop your own skills for career enhancement & advancement
Improve corporate performance
Generate enhanced competitive advantages
Customers: as a preferred vendor
Employees: as a preferred employer
• Pad your resume
LINEAR SILOS OF EXPERTISE
HR
FINANCE
LOG.
R&D
MKTG
PUB. REL.
ACCT
INVEST. REL.
MIS
LEGAL
CROSS-FUNCTIONAL --TALKING TO ONE ANOTHER
HR
FINANCE
LOG.
R&D
MKTG
PUB. REL.
ACCT
INVEST. REL.
MIS
LEGAL
THERE IS A REVOLUTION GOING ON IN HUMAN CAPITAL MGMT
and in business in general
1.
2.
3.
4.
Re-thinking and changing business models
HRM as a cost center vs. strategic partner
Technology driven (e.g. Internet & H.R.I.S.)
Requires strong business knowledge & effective cross-silo
communications
5. Competition for talent (relocate to Albany???)
6. Generational issues
FOUR TRENDS in HRM
1. Improving Business Acumen
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Critical thinking
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Operational transparency + operational knowledge
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Financial intelligence
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Developing a clear line of sight from employees to customers and stakeholders
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Acquiring business skills beyond your specialty
FOUR TRENDS
2. Acquiring and Managing Talent
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Attracting and retaining talent
“Human capital will go to where it is needed and appreciated” - Walter Wriston
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Outsourcing & flexible work options
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Generational differences
Work/life balance vs. live to work
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Virtual management
FOUR TRENDS
3. Becoming a learning organization
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HRM assists in the complexity of modern business
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OJT development
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Crossing discipline boundaries (cross training)
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Learning is seen as a competitive advantage
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Defining and measuring the ROI of training
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“I never let my schooling interfere with my education”
(Mark Twain)
FOUR TRENDS
4. Managing Change and Cultural Transformation
- Embracing change as a way of life
- Diversity
global – national – regional - local
- Demographics
- Globalism vs. localization
THUS WE MUST ASK THE FOLLOWING QUESTION:
How does the Human Resources function help advance the objectives of:
• The company
• The shareholders
• The employees
• Organizational departments, e.g. Finance – Marketing – MIS – Accounting
–Production – etc.
• The Vision/Mission/Strategy of the company
What should we be training and/or developing
Human Resources needs to promote and coordinate training in:
• Technical skills
• Leadership skills
• Financial skills
• Business skills
• Political/diplomatic skills
• Technology skills
• Critical thinking skills
• Theory vs. practical (real-world)
For example: Selected Professional Development Programs
Regulatory Requirements
a.
b.
c.
d.
e.
Federal & State requirements
Industry requirements
Certification requirements (e.g. Apprentice – Journeyman – Master)
Safety requirements
Continuing education requirements
Selected Professional Development Programs
Supervisory / managerial development
a.
b.
c.
d.
e.
f.
g.
Communications
Motivation
Leadership
Discipline
Common or popular supervision theories
Teamwork
Coaching/mentoring
What should we be training and/or developing
Selected Professional Development Programs Practical Exercise
Imagine that you have been hired as a 1st year accounting, marketing, MIS, or finance specialist at
XYZ corporation – a $500 million food services company. Please identify the next five professional
development steps you think you should take:
Accounting
Marketing
MIS
Finance
HR
1.
B.A.
2.
MBA
3.
CPA
4.
EA
5.
Other
Practical Exercise Possible Responses
HRM Professional Development Programs
• HRM Specialties, e.g. compensation – benefits – gov’t regulations
• Employee/Labor relations
• Contract negotiations
• Employee benefits design – costing – implementation – communication
• Global HRM
• Multi-site Worker’s Compensation
Responsibilities for Training Programs
Employee
Supervisor
HR Training Specialist
Organization
Government
Industry
Ultimately, it is the responsibility of each employee to develop his/her KSAs
Example of a Typical Training Program
Employee Orientation – Group & Individual
• Policies and procedures – holidays, hours of work, security
• Employee paperwork – payroll, benefits, personnel files, I-9, etc.
• Overview of company history and culture
• Leadership and chains of command
• How do we conduct business – how do we make money
• What are our competitive advantages
• Who are our customers
• Analysis of the SWOT of the company
• Job description
ONBOARDING
• Fancier word for ‘orientation’
• Refers to the hiring and integration process used to socialize new employees
to the company
• Typically used for mid to upper level employees
• More important now as companies recognize the critical role of human
capital in organizational success
NEW EMPLOYEE INFORMATION EXERCISE
Assume that today is your first day on the job at your new employer and you are
participating in their orientation program. Please identify 5 areas of information
that you would like to take away from this session.
1.
2.
3.
4.
5.
Some Key Training Definitions
• Training – The systematic process of providing employees with competencies needed to
perform specific functions and that sustain and add value to the work.
• Development – preparing employees to take on additional responsibilities
• High-potential employees – employees with greatest likelihood of being successful and
advancing more quickly
TRAINING SCENARIO
• As the Transportation Department Manager for a local freight company, you have four warehousemen
working for you. Your job is to insure that 20-25 large trucks each day are properly scheduled for unloading
raw material used in your company and re-loading the finished product for distribution to your customer’s
warehouses.
• The failure of just one truck to reach its intended customer on time represents $25,000 in lost revenue.
• Pete is your best warehouseman. His three colleagues are new and require additional time and supervision
in order to come up to Pete’s level of competence.
• The company requires that Pete attend a two-day workshop in Boston on new regulations governing the
trucking industry.
What are some possible solutions to this scenario?
CONCERNS FROM THE MANAGER’S PERSPECTIVE
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What’s my ROI regarding this training
Will this make my life easier/better/more productive/more profitable …
Is this in my training budget
Who is going to do the work while my employees are away at this training program?
• What is the level of importance on training from the C-Suite, and is it real or just lip
service
• My non-exempt employees must be compensated for all mandatory training – even
online courses done at home. Where is this money coming from
Consider why your audience is attending the training
Why am I attending your training program?
1.
2.
3.
4.
5.
6.
I need this course to graduate
I want the information/technique that is offered
The company says I have to take it
It is required education in my field
I can pad my resume with it
It will benefit me by …
Needs Assessment - Organization Analysis
In terms of required/desired KSAs
1. Where are we now
2. Where do we wish to be one year (or more) from now
3. What is the best way to get there
In other words
• How do the organization’s performance metrics look? (quantitative & qualitative)
• Do the metrics suggest there are performance gaps that could be reduced with
training?
Analyzing The Needs Of The Organization
What is the current health of the organization, e.g.
• Financial
• Product/service design and delivery
• Marketing strength
• Use of technology
• Competition
• Quality employees
• Employee performance
• Critical thinking skills
• Growth opportunities
Mental Gymnastics
Your production department is generating a scrap rate of 8%. An acceptable
scrap rate for your company is 2%. The industry average is 3%.
List some possible reasons for the scrap rate to be this high
1.
2.
3.
4.
5.
Where does training fit into the solution to this problem?
Possible reasons for an unacceptable scrap rate
1.
2.
3.
4.
5.
6.
7.
Poor engineering
Not enough employees
Raw material defects
Employees not familiar with machinery or material
Poor leadership
Employees not trained properly on the machinery or the process
No incentive for better scrap rates
Practical Exercise – Possible Solutions via Training
1. Employees not properly trained on machinery
Technical training
2. Poor leadership/motivation skills of managers
Leadership training
3. Failure to link their work to the success of the
department and the company
Supervisory training
4.
Financial training
Understanding financial cost of excessive scrap rate
More Mental Gymnastics
Your employer – 1st National Bank – has been experiencing a loan loss ratio of
11%. This is a key financial metric for all banks and lending institutions.
Your next two competitors are averaging a loan loss ratio of about 7.5%
What’s wrong with your bank’s picture?
Needs Assessment - Task Analysis
Identifies gaps between
• KSAs needed to perform the work AND Current KSAs of employees
• Necessary KSAs
Gap ----• Current KSAs
Why the skills gap
• Improper job design
Engineering
• Improper job hiring
Recruiting & Selection
• Job has been re-structured
Organizational re-design
• Unavailable in the job market (e.g. STEM)
Labor supply
Key Training Thought Starters
• Why am I learning this stuff – can I use my newly learned KSAs in my job
• What’s in it for me (W.I.I.F.M.)
• Is it cost effective from my manager’s perspective (what’s his/her payoff)
• I’m the Human Resources Manager – Why should I have to learn accounting
and business finance?????
Another HRM Thought Starter
As the manager of your company’s HR department, you have been allotted 10 hours per month in your
budget for training. Which subjects should you spend these 10 hours on, and why?
2 hours - Developing your interviewing skills
4 hours – Mandatory and legal compliance programs
2 hours – Diversity training
2 hours - Developing your H.R.I.S. skills
2 hours – Working with handicapped employees
2 hours – Supervisory/managerial skills development
2 hours – Safety training
2 hours – Dealing with hostile environments
2 hours – Fair Labor Standards Act – Dealing with union and union grievances
Total hours = 20
TRAINING METHODS
Which method works best for you?
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On the job training (OJT)
Classroom learning
Audio-visual
Gaming
College/University programs
• Seminars (web & in-person)
Operations & Procedures manuals
E-Learning
Simulations
Blended learning (multiple modes)
Coaching & Mentoring
Workshops
Developing a Continuous Learning Mindset
“I never let my schooling interfere with my education”. (Mark Twain)
• A learning organization is one where all members of an organization are continually
involved in the learning process and that learning and working are seamlessly intertwined
• For non-exempt employees, all mandatory training must be compensated
• Knowledge is power