PowerPoint
Presentation for
Managing Performance
through Training and
Development
Adapted by
Alan Saks
University of Toronto
Copyright © 2019 by Nelson Education Ltd.
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The Training and Development Process
Copyright © 2019 by Nelson Education Ltd.
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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
Copyright © 2019 by Nelson Education Ltd.
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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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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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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 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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The Performance Management
Process
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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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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 (longerterm focus)
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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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T&D Benefits
• To organizations
• To employees
• To society
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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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T&D Benefits—Employees
Intrinsic (internal)
Extrinsic (external)
• Improved knowledge and
skills
• Confidence or self-efficacy
• Feelings of increased
usefulness
• Increased sense of
belonging
• Positive attitudes toward
their job and organization
• Higher earnings
• Improved marketability
• Greater security of
employment
• Enhanced opportunity for
advancement and
promotion
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T&D Benefits—Societal
• Educated and employed population
• Health and safety
• Economy and standard of living
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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 mediumsized organizations
• Less than half (47 percent) of Canadian organizations
provide training to their employees
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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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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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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 governmentsanctioned training, or pay into a provincial fund for
workforce training
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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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T&D Context
• Environmental context
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Global competition
Technology
Labour market
Environmental change
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T&D Context
• Organizational
context
– Strategy
•
•
Strategic human
resource
management (SHRM)
Strategic training and
development (ST&D)
– Structure
– Culture
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Strategic Model of T&D
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T&D Context
• Human resources system
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–
–
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HR planning
Job analysis
Compensation
Recruitment
Selection
Performance appraisal
Health and safety
Labour relations
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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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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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