Chapter 1: The Training and
Development Process
Managing Performance through Training and Development, 9e
Learning Objectives (1)
• L.O. 1.1 Discuss the importance of training and development in organizations, and the risks of
not providing training.
• L.O. 1.2 Discuss the role of training and development in the performance management process.
• L.O. 1.3 Differentiate between training and development, recognizing their purposes in
acquiring skills for current job performance and preparing for future job responsibilities, and
understanding the importance of human and social capital.
• L.O. 1.4 Describe how training and development benefits organizations.
• L.O. 1.5 Discuss the intrinsic and extrinsic benefits of training and development for employees,
and understand how acquiring new knowledge and skills can influence job behaviour and
performance.
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Learning Objectives (2)
• L.O. 1.6 Describe the benefits of training and development for society, including its impact on
creating an educated and skilled population, its improvements to public health and safety, and
its contributions to economic growth and a high standard of living.
• L.O. 1.7 Discuss the state of training and development in Canadian organizations, as well as the
importance of investing in training and development, and explain why some organizations
invest more than others.
• L.O. 1.8 Discuss the context of training and development and the relationships between
different factors, and discuss the importance of strategic training and development (ST&D).
• L.O. 1.9 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
• Performance and competitiveness are highly dependent on training and development.
• Continuous learning and skill development have become key factors for the success of
individuals and organizations today.
• The critical role that training and development play in organizations was clearly evident during
the COVID-19 pandemic.
• Training and development of employees can improve an organization’s success and
competitiveness.
• There are many potential negative consequences if an organization does not provide the right
amount, or type, of training for its employees.
• Training is of vital importance, not only to employees and organizations, but to all of us who
use public transportation and purchase goods and services every day of our lives.
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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.
• It involves identifying, measuring, and developing the performance of individuals and teams,
and the alignment of performance with the strategic goals of the organization.
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The Performance Management (PM) Process
• PM involves activities and programs to develop employees and improve their performance:
o establishing or re-establishing performance goals and expectations—performance
goals should be SMART
o monitoring employee performance and providing feedback
o performance evaluation with consequences
• A critical component of the performance management process is employee training and
development, and the creation of a development plan for employees.
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Training and Development (T&D)
• Training refers to formal and planned efforts that allow employees to acquire knowledge, skills,
and abilities (KSAs) to improve performance in their current job (short-term focus).
• Training effectiveness refers to the extent to which trainees and the organization benefit as
intended.
• Development refers to formal and planned efforts to help employees acquire KSAs required to
perform future job responsibilities and for the long-term achievement of individual career goals
and organizational objectives.
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Human Capital
• The primary objective of training and development is to develop and maximize an
organization’s human capital.
• Human capital refers to the knowledge, skills, and abilities of an organization’s employees.
• There are two kinds of human capital:
o generic human capital
o firm-specific human capital
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Social Capital
• Training and development can also facilitate the development of social capital.
• Social capital refers to the social resources that an individual obtains from participation in a
social structure.
• Like human capital, social capital can also be used by employees to achieve their goals, and it
contributes to employee and organization performance.
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Benefits of Training and Development (1)
Benefits to Organizations
• strategy: training employees to have knowledge and skills to help achieve organizational goals
and objectives
• effectiveness: increases organizational performance
• employee recruitment, retention, and work engagement: attracts, engages, and helps retain
top talent
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Benefits of Training and Development (2)
Benefits to Employees:
Intrinsic (Internal)
Benefits to Employees:
Extrinsic (External)
• improved knowledge and skills
• confidence or self-efficacy
• feelings of increased usefulness
• increased sense of belonging
• positive attitudes toward their job and
• higher earnings
• improved marketability
• greater security of employment
• enhanced opportunity for advancement
and promotion
organization
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Benefits of Training and Development (3)
Benefits to Society
• educated and employed population
• health and safety
• economy and standard of living
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Investments in Training and Development
• 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. The same goes for 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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T&D in Canada
• Canadian organizations have underinvested in T&D, but the latest findings indicate a positive
and progressive trend.
• The average investment per employee in 2021 was $1,005.87, which is up from $889 in 2017.
• This is still lower than the average recommended investment of $1,800.
• The average number of hours of training received by employees in Canadian organizations has
declined from 32 hours, in 2017, to 27 hours, in 2021.
• 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 Not Invest
• Training is not a high priority.
• The perception is that training and development is a cost, rather than an investment.
• Organizations that view training as a cost tend to limit their training investments to only what is
required by law, or necessary to survive.
• Training is often one of the first things to go when times are tough and there are cuts to
discretionary spending.
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T&D: Investment or Expense? (1)
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
• 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 $2 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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Training Repayment Agreement Provision (TRAP)
• A contract between the employer and employee that states that the employer will provide
training in exchange for the employee remaining with the organization for a minimum period of
time.
• If the employee fails to remain for the agreed-upon period of time, then they must reimburse
the organization for the cost of the training.
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The Context of Training and Development (1)
• Training and development are embedded in a larger context that can influence the extent to
which training and development is provided in an organization, as well as the type of training
provided.
• Training and development play an important role in how organizations respond to changes in
the external environment.
• Organizations often respond by increasing their investments in training and development.
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The Context of Training and Development (2)
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The Context of Training and Development (3)
Environmental Context
Organizational Context
• global competition
• technology
• labour market
o skills mismatch
o work-integrated learning (WIL)
• environmental change
• strategy
o corporate strategy and business
strategy
• structure
• culture
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The Human Resources System
• When organizations make internal changes in response to changes in the environment, this will
require changes in the human resources system.
• Two key components of the human resources system:
o strategic human resources management (SHRM)
o high-performance work system (HPWS)
• Many studies have found that organizations with HPWSs have superior productivity and
financial performance.
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Strategic Training and Development (ST&D)
• The alignment of an organization’s training needs and programs with an organization’s strategy
and objectives
• By linking training to business strategy, training becomes strategic, rather than an isolated and
independent activity, and it is more likely to be effective.
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Instructional Systems Design Model
• A systematic approach to the training and development process
• Instructional design refers to the systematic process of developing learning experiences to
support and facilitate learning.
• An instructional designer designs and develops the instructional materials and content of a
training program.
• The instructional systems design (ISD) model depicts training and development as a rational
and scientific process. It consists of three major steps:
o needs analysis
o training design and delivery
o training evaluation
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Instructional Systems Design Model (1)
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The Instructional Systems Design Model in Practice
• Many organizations do not follow all of the steps of the model.
• As a result, organizations implement training programs that are often ineffective.
• Making training programs more effective begins with the ISD model, which remains the best
approach for managing the training and development process.
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Summary
• Introduced the T&D process, and the important role 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.
• Discussed the state of training and development in Canada, and whether training is perceived
as an investment or an expense.
• Illustrated that for training effectiveness, training should be strategic—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
• business strategy
• corporate strategy
• development
• firm-specific human
capital
• generic human capital
• high-performance work
system (HPWS)
• human capital
• instructional design
• instructional designer
• 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 effectiveness
• training repayment
agreement provision
(TRAP)
• work engagement
• work-integrated learning
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