Managing Performance through Training and Development Textbook

SERIES IN HRM NELSON HUMAN RESOURCES MANAGEMENT S K H CCOUN INING EIGHTH EDITION Part of the market-leading series in Human Resources Management, this new eighth edition of Managing Performance through Training and Development has been updated to reflect current examples and research. The Nelson Series in Human Resources Management is the best opportunity for students and practitioners to access a complete set of HRM products. The series provides quick access to information across many HRM disciplines and over the years has become an essential source of information, meeting the requirements for professional designation from the CPHR Canada and the provincial HR associations. This one-stop resource will prove useful for anyone looking for solutions for the effective management of people. Other titles in the Nelson Series in Human Resources Management: Strategic Human Resources Planning, Monica Belcourt, Mark Podolsky Recruitment and Selection in Canada, Victor M. Catano, Willi H. Wiesner, Rick D. Hackett Management of Occupational Health and Safety, E. Kevin Kelloway, Lori Francis, Bernadette Gatien Industrial Relations in Canada, Robert Hebdon, Travor C. Brown Strategic Compensation in Canada, Richard J. Long, Parbudyal Singh M N GING PE FO NCE T OUG INING ND EVELO ENT M N GING PE FO NCE T OUG ND EVELO ENT M N GING PE FO NCE T OUG INING ND EVELO ENT EIGHTH EDITION EIG T EDITION nelson.com ISBN-13: 978-0-17-679807-9 ISBN-10: 0-17-679807-2 s Tra h hr pm D a r a r s a a a D rma hr h h h pm rma r a a a a Tra Tra h hr r a rma pm D a a a a 9 780176 798079 AL N M. S K | ROBE T R. H CCOUN bowdenimages/Getty Images MindTap empowers students. Personalized content in an easy-to-use interface helps you achieve better grades. The new MindTap Mobile App allows for learning anytime, anywhere with flashcards, quizzes and notifications. The MindTap Reader lets you highlight and take notes online, right within the pages, and easily reference them later. nelson.com/mindtap 98079_ifc_hr.indd 1 9/12/18 3:18 PM SERIES IN HRM NELSON HUMAN RESOURCES MANAGEMENT MANAGING PERFOR ANCE THROUGH TRAINING AND EVELO EN EIGHTH DITION ALAN M. SAKS University of Toronto ROBERT R. HACCOUN Université de Montréal S I EDI : MON CA BELCOURT t pm tor e es er I D m School of Human Resource Management, Faculty of Liberal Arts and Professional Studies, York University 00_fm.indd 1 9/14/18 9:30 AM Managing Performance through Training and Development, Eighth Edition by Alan M. Saks and Robert R. Haccoun VP, Product and Partnership Solutions: Claudine O’Donnell Publisher, Digital and Print Content: Alexis Hood Executive Marketing Manager: Amanda Henry Content Development Manager: Elke Price Photo and Permissions Researcher: Julie Pratt COPYRIGHT © 2019, 2016, 2013, 2010 by Nelson Education Ltd. Printed and bound in Canada 1 2 3 4 21 20 19 18 For more information contact Nelson Education Ltd., 1120 Birchmount Road, Toronto, Ontario, M1K 5G4. Or you can visit our Internet site at nelson.com Cognero and Full-Circle Assessment are registered trademarks of Madeira Station LLC. Production Project Manager: Shannon Martin Design Director: Ken Phipps Production Service: SPi-Global Post-secondary Design Project Manager: Pamela Johnston Copy Editor: Linda Jenkins Proofreader: SPi-Global Indexer: SPi-Global ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transcribed, or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, or information storage and retrieval systems—without the written permission of the publisher. For permission to use material from this text or product, submit all requests online at cengage.com/permissions. Further questions about permissions can be emailed to permissionrequest@cengage.com Cover Design: Jen Spinner Compositor: SPi-Global Library and Archives Canada Cataloguing in Publication Saks, Alan M. (Alan Michael), author Managing performance through training and development / Alan M. Saks, University of Toronto, Robert R. Haccoun, University of Montreal.— Eighth edition. Issued in print and electronic formats. ISBN 978-0-17-679807-9 (softcover).—ISBN 978-017-684842-2 (PDF) 1. Employees—Training of-—Textbooks. 2. Textbooks. I. Haccoun, Robert R., author II. Title. HF5549.5.T7S23 2018 658.3’124 C2018-903528-5 C2018-903529-3 ISBN-13: 978-0-17-679807-9 ISBN-10: 0-17-679807-2 Every effort has been made to trace ownership of all copyrighted material and to secure permission from copyright holders. In the event of any question arising as to the use of any material, we will be pleased to make the necessary corrections in future printings. Interior Design: Jen Spinner 00_fm.indd 2 9/14/18 9:30 AM In memory of my father, Simon Saks Alan M. Saks To the little ones: Orli, Amit, Erez, and Micah Robert R. Haccoun 00_fm.indd 3 9/14/18 9:30 AM 00_fm.indd 4 9/14/18 9:30 AM BR EF CONTENTS About the Series xxiii About the Authors xxiv Preface xxvi Acknowledgments xxxiv Chapter 1 The Training and Development Process 1 Chapter 2 Learning and Motivation 40 Chapter 3 The Needs Analysis Process 80 Chapter 4 Training Design 115 Chapter 5 Off-the-Job Training Methods 149 Chapter 6 On-the-Job Training Methods 178 Chapter 7 Technology-Based Training Methods 210 Chapter 8 Training Delivery 249 Chapter 9 Transfer of Training 281 Chapter 10 Training Evaluation 317 Chapter 11 Training Costs and Benefits 357 Chapter 12 Training Programs 382 Chapter 13 Chapter 14 Management and Leadership Development 413 The Evolution and Future of Training and Development 455 Appendix Integrative Case Studies 469 Index 479 v I NEL 00_fm.indd 5 9/14/18 9:30 AM 00_fm.indd 6 9/14/18 9:30 AM CONTENTS About the Series xxiii About the Authors xxiv Preface xxvi Acknowledgments xxxiv Chapter 1 The Training and Development Process 1 Chapter Learning Outcomes 1 Introduction 3 Training Today 1.1: The Risks and Consequences of Failing to Provide Training 4 Performance Management 5 The Trainer’s Notebook 1.1: Smart Goals 6 Training and Development 7 Benefits of Training and Development 8 Benefits to Organizations 8 Training Today 1.2: The Effects of Training on Firm Productivity and Profits 10 Benefits to Employees 11 Benefits to Society 11 Training and Development in Canada 13 Is Training an Investment or an Expense? 16 The Context of Training and Development 17 The Environmental Context of Training and Development 18 The Organizational Context of Training and Development 20 The Trainer’s Notebook 1.2: The Strategic Alignment of Training and Development 21 The Human Resources System 23 The Instructional Systems Design (ISD) Model of Training and Development 23 The Trainer’s Notebook 1.3: The Application of the ISD Model 25 vii NEL 00_fm.indd 7 9/14/18 9:30 AM Summary and Road Map 26 Key Terms 27 Discussion Questions 27 The Great Training Debate 28 Exercises 28 Case Incident: Beer Ambassadors 29 Case Study: Flotation Ltd. 30 Running Case Study: Dirty Pools 32 References 34 Chapter 2 Learning and Motivation 40 Chapter Learning Outcomes 40 Introduction 41 What Is Learning? 42 Workplace Learning 42 Training Today 2.1: Informal Learning Behaviours 45 The Trainer’s Notebook 2.1: Facilitating Informal Learning in Organizations 46 Learning Outcomes 46 Stages of Learning and Resource Allocation Theory 48 Learning Styles 50 Learning Theories 53 Conditioning Theory 53 Social Cognitive Theory 55 The Trainer’s Notebook 2.2: Prompting Self-Regulation 57 Adult Learning Theory 58 The Trainer’s Notebook 2.3: Implications of Adult Learning Theory for Training and Development 60 Motivation 60 Goal-Setting Theory 61 Training Motivation 63 A Model of Training Effectiveness 64 Summary 66 Key Terms 67 Discussion Questions 68 ontents viii 00_fm.indd 8 C NEL 9/14/18 9:30 AM The Great Training Debate 68 Exercises 69 Case Incident: Management Training at IKEA 71 Case Study: The Performance Appraisal Training Program 72 Running Case Study: Dirty Pools 75 References 75 Chapter 3 The Needs Analysis Process 80 Chapter Learning Outcomes 80 Introduction 82 What Is a Needs Analysis? 82 The Needs Analysis Process 83 Step One: A Concern 84 Step Two: Importance 84 Step Three: Consult Stakeholders 84 Step Four: Data Collection 85 Needs Analysis Outcomes 85 Organizational Analysis 86 Strategic Alignment 86 Training Today 3.1: Strategic Alignment at MillerCoors 87 Environment 87 Resource Analysis 88 Organizational Context 89 The Trainer’s Notebook 3.1: Continuous Learning Culture Diagnosis 90 Task Analysis 90 Cognitive Task Analysis 93 Team Task Analysis 93 Person Analysis 94 Determining Solutions to Performance Problems 95 The Trainer’s Notebook 3.2: The Training Solution Checklist 98 Needs Analysis Methods 99 Needs Analysis Sources 103 Obstacles to Needs Analysis 104 The Trainer’s Notebook 3.3: How to Conduct a Rapid Needs Analysis 105 NEL ontents 00_fm.indd 9 C ix 9/14/18 9:30 AM Summary 105 Key Terms 106 Discussion Questions 106 The Great Training Debate 107 Exercises 107 Case Incident: The Asthma Attack 108 Case Study: The Incident and Apology 109 Running Case Study: Dirty Pools 112 References 112 Chapter 4 Training Design 115 Chapter Learning Outcomes 115 Introduction 117 Training Objectives 118 Writing Training Objectives 119 The Purchase-or-Design Decision 121 Purchase Decision Factors 121 Request for Proposal (RFP) 122 The Trainer’s Notebook 4.1: An Effective Request for Proposal (RFP) 123 Training Content 123 The Trainer’s Notebook 4.2: Training Content for Privacy Training 125 Training Methods 126 Active Practice 126 Training Today 4.1: Designing Training Programs for Older Workers 127 Pre-Training Interventions 128 Conditions of Practice During Training 131 The Trainer’s Notebook 4.3: How to Give Training Feedback 133 Active Learning 134 Error-Management Training (EMT) 135 Model of Training Effectiveness—Training Design 136 Summary 137 Key Terms 138 Discussion Questions 138 ontents x 00_fm.indd 10 C NEL 9/14/18 9:30 AM The Great Training Debate 139 Exercises 139 Case Incident: We ID 25 141 Case Study: Training the Sales Force 142 Running Case Study: Dirty Pools 145 References 145 Chapter 5 Off-the-Job Training Methods 149 Chapter Learning Outcomes 149 Introduction 151 Lecture Method 152 Tips for Trainers 152 Discussion Method 153 Tips for Trainers 153 Case Study Method 154` Tips for Trainers 155 Case Incident Method 155 Tips for Trainers 156 Behaviour Modelling Training 156 Tips for Trainers 157 The Trainer’s Notebook 5.1: Implementing Behaviour Modelling Training 158 Role Play 158 Tips for Trainers 159 The Trainer’s Notebook 5.2: Steps for Effective Role Plays 160 Simulations 160 Tips for Trainers 162 Training Today 5.1: Simulations for Sales Success 162 Games 163 Tips for Trainers 164 Action Learning 164 Tips for Trainers 165 Instructional Media 165 Tips for Trainers 166 NEL ontents 00_fm.indd 11 C xi 9/14/18 9:30 AM Choosing an Instructional Method 166 Cost and Resource Availability 167 On-the-Job Application 167 Trainer Skill and Preferences 167 Trainee Preferences and Characteristics 167 Blended Training 168 Summary 168 Key Terms 168 Discussion Questions 169 The Great Training Debate 169 Exercises 170 Case Incident: The Altercation 171 Case Study: The Customer-Service Training Program 172 Running Case Study: Dirty Pools 175 References 175 Chapter 6 On-the-Job Training Methods 178 Chapter Learning Outcomes 178 Introduction 180 On-the-Job Training (OJT) Methods 180 The Problem with On-the-Job Training 181 Job Instruction Training 182 Step 1: Preparation 182 Step 2: Instruction 183 Step 3: Performance 184 Step 4: Follow-up 185 Tips for Trainers 185 Performance Aids 185 Training Today 6.1: Operating Room Checklist Saves Lives 186 Tips for Trainers 188 Job Rotation 188 Tips for Trainers 189 Apprenticeships 189 Tips for Trainers 191 ontents xii 00_fm.indd 12 C NEL 9/14/18 7:00 PM The Trainer’s Notebook 6.1: Increasing Employer Participation in Apprenticeship Training 192 Coaching 193 Tips for Trainers 194 Mentoring 195 The Trainer’s Notebook 6.2: Developing an Effective E-Mentoring Program 196 Tips for Trainers 196 Off-the-Job versus On-the-Job Training Methods 197 Off-the-Job Training Methods 197 On-the-Job Training Methods 198 Combining On-the-Job and Off-the-Job Training Methods 199 Summary 199 Key Terms 200 Discussion Questions 200 The Great Training Debate 200 Exercises 201 Case Incident: Davco Machine Ltd. 203 Case Study: TPK Appliances 203 Running Case: Dirty Pools 205 References 206 Chapter 7 Technology-Based Training Methods 210 Chapter Learning Outcomes 210 Introduction 212 What Is Technology-Based Training? 212 Computer-Based Training and E-Learning 213 Instructor-Led Training and Self-Directed Learning 214 Asynchronous and Synchronous Training 216 Online and Distance Education 216 Electronic Performance Support Systems 217 The Virtual Classroom 218 The Trainer’s Notebook 7.1: Designing Effective Virtual Training Programs 219 Social Media and Web 2.0 Technology 220 NEL ontents 00_fm.indd 13 C xiii 9/14/18 9:30 AM Mobile Learning (M-Learning) 221 Synthetic Learning Environments (SLEs) 222 Training Today 7.1: Virtual Reality Training at BNSF Railway 222 Designing Effective Technology-Based Training Programs 223 The Trainer’s Notebook 7.2: Design Principles for Computer-Based Training 227 Benefits of Technology-Based Training 227 Advantages 227 Disadvantages 229 Effectiveness of Technology-Based Training 230 Summary 232 Key Terms 232 Discussion Questions 233 The Great Training Debate 234 Exercises 234 Case Incident: Playing Video Games to Learn 236 Case Study: E-Learning at Flotation Ltd. 237 Case Study: The Korea Ginseng Corporation 240 Running Case Study: Dirty Pools 243 References 244 Chapter 8 Training Delivery 249 Chapter Learning Outcomes 249 Introduction 250 The Lesson Plan 250 The Trainer’s Notebook 8.1: Guidelines for Developing a Lesson Plan 252 The Trainer 254 The Trainer’s Notebook 8.2: Getting Trainees Engaged 255 Train-the-Trainer 255 The Trainer’s Notebook 8.3: Train-the-Trainer Fundamentals 256 The Trainees 257 Training Today 8.1: Training a Multi-Generational Workforce 257 Trainability Test 258 ontents xiv 00_fm.indd 14 C NEL 9/14/18 9:30 AM Training Materials and Equipment 259 Training Site 259 Seating Arrangement 260 Scheduling the Training Program 261 Training Administration 262 The Role of Ethics in Training and Development 262 Implementing the Training Program 263 Learning Climate 264 Gagné’s Nine Events of Instruction 265 Closing a Training Program 268 Training Delivery Problems 268 The Trainer’s Notebook 8.4: Solutions to Training Delivery Problems 270 Summary 272 Key Terms 272 Discussion Questions 272 The Great Training Debate 273 Exercises 273 Case Incident: Training the Trainer at the Running Room 275 Case Study: The Houghton Refrigeration Company 275 Running Case: Dirty Pools 278 References 279 Chapter 9 Transfer of Training 281 Chapter Learning Outcomes 281 Introduction 283 What Is Transfer of Training? 283 The Transfer of Training Problem 284 Transfer of Training Process 286 Trainee Characteristics 287 Training Design 287 Work Environment 288 Transfer of Training Strategies 290 Transfer of Training Strategies before Training 292 NEL ontents 00_fm.indd 15 C xv 9/14/18 9:30 AM Management 292 Trainer 293 Trainees 294 Transfer of Training Strategies during Training 295 Management 295 Trainer 296 Trainees 296 Transfer of Training Strategies after Training 297 Management 297 Trainer 298 Training Today 9.1: The Effects of Follow-Up Sessions on the Transfer of Training 299 Trainees 299 The Trainer’s Notebook 9.1: Best Practice Strategies for Transfer of Training 300 Training Today 9.2: Using Technology to Facilitate Transfer of Training 300 Transfer of Training Interventions 301 Relapse Prevention 301 Self-Management 303 Goal-Setting 303 Post-Training Supplements 303 Booster Sessions 304 Self-Coaching 304 Upward Feedback 304 Transfer System 304 Model of Training Effectiveness—Transfer of Training 305 Summary 306 Key Terms 307 Discussion Questions 307 The Great Training Debate 308 Exercises 308 Case Incident: BC Assessment 310 Case Study: The School Board 311 ontents xvi 00_fm.indd 16 C NEL 9/14/18 9:30 AM Running Case: Dirty Pools 313 References 314 Chapter 10 Training Evaluation 317 Chapter Learning Outcomes 317 Introduction 319 What Is Training Evaluation? 319 Why Conduct Training Evaluations? 319 Do Organizations Conduct Training Evaluations? 320 Barriers to Training Evaluation 322 Pragmatic Barriers to Training Evaluation 322 Political Barriers to Training Evaluation 323 Training Today 10.1: Upper Management’s Role in Training Evaluation 323 Types of Training Evaluation 324 Models of Training Evaluation 325 Kirkpatrick’s Hierarchical Model: The Four Levels of Training Evaluation 325 Research on Kirkpatrick’s Model 326 C Model 327 Decision-Based Evaluation Model 328 Training Today 10.2: The Learning Transfer System Inventory (LTSI) 329 Training Evaluation Variables 329 Reactions 329 Learning 334 Behaviour 336 Motivation 338 Self-Efficacy 338 Perceived and/or Anticipated Support 339 Organizational Perceptions 340 Organizational Results 340 Data Collection Designs in Training Evaluation 342 Descriptive Training Evaluation Models 342 The Trainer’s Notebook 10.1: Understanding Pre-Post Differences 343 The Limit of the Three Descriptive Evaluation Models 344 C xvii oma NEL ontents 00_fm.indd 17 9/14/18 9:30 AM Causal Evaluation Designs 344 The Internal Referencing Strategy (IRS): A Compromise Evaluation Model 345 Summary of Data Collection Designs 347 A Final Integrative Comment: Models, Outcomes, and Data Collection Designs 347 Summary 347 Key Terms 348 Discussion Questions 348 The Great Training Debate 349 Exercises 349 Case Incident: The Social Agency 350 Case Study: The Alcohol/Drug Abuse Prevention Program (ADAPP) 351 Running Case Study: Dirty Pools 353 References 353 Chapter 11 Training Costs and Benefits 357 Chapter Learning Outcomes 357 Introduction 358 Training and the Bottom Line 359 The Trainer’s Notebook 11.1: Business Impact-Driven Learning 360 Training and the Bottom Line in Canadian Organizations 360 Costing Training Programs 361 Direct Costs 361 Indirect Costs 361 Developmental Costs 362 Overhead Costs 362 Trainee Compensation Costs 362 Training Costs at the Wood Panel Plant 362 The Benefits of Training Programs 364 Return on Investment (ROI) 365 Training Today 11.1: The Investing in People Project 366 The Trainer’s Notebook 11.2: Converting Benefits to Monetary Values 368 ontents xviii 00_fm.indd 18 C NEL 9/14/18 9:30 AM Utility Analysis 369 Break-Even Analysis 370 The Credibility of Benefit Estimates 371 The Trainer’s Notebook 11.3: Increasing the Credibility of Benefit Estimates 372 Summary 372 Key Terms 373 Discussion Questions 373 The Great Training Debate 374 Exercises 374 Case Incident 1: The Harmony Remote 375 Case Incident 2: Renswartz Realty Company 376 Case Study: DATAIN 377 Running Case: Dirty Pools 380 References 380 Chapter 12 Training Programs 382 Chapter Learning Outcomes 382 Introduction 383 Orientation Training 386 Essential Skills Training 386 Technical and Non-Technical Skills Training 387 Information Technology Training 388 Health and Safety Training 388 Total Quality Management Training 389 Team Training 390 Sales Training 391 Customer-Service Training 391 Sexual and Racial Harassment Training 392 Ethics Training 393 Diversity Training 394 Cross-Cultural Training 395 The Trainer’s Notebook 12.1: How to Design an Effective Cross-Cultural Training Program 396 Health and Wellness Training 397 NEL ontents 00_fm.indd 19 C xix 9/14/18 9:30 AM Training Today 12.1: Mental Health Training at the Government of the Northwest Territories 398 Summary 398 Key Terms 399 Discussion Questions 399 The Great Training Debate 400 Exercises 400 Case Incident: Saving Theatre Calgary 403 Case Study: The Foreign Assignment 403 Running Case Study: Dirty Pools 408 References 409 Chapter 13 Management and Leadership Development 413 Chapter Learning Outcomes 413 Introduction 415 Training Today 13.1: Bench Strength 416 What Is Management? 417 Management Development versus Employee Training 418 What Is Management Development? 418 Is Management Development Important? 418 Management Development 419 Core Managerial Roles 419 Interpersonal Roles 420 Informational Role 420 Decisional Role 420 Managerial Functions 420 Controlling 421 Organizing 421 Planning 421 Leading 421 Leadership: A Critical Function of Management? 421 Leadership and Its Development: A Work in Progress 422 Training Today 13.2: Authentic Leadership 424 Training Today 13.3: Taking Management Development Seriously: The PricewaterhouseCoopers Story 425 C NEL ontents xx 00_fm.indd 20 9/14/18 9:30 AM Management Skills 425 Emotional Intelligence 427 Project Management and Emotional Intelligence 428 Models of Management Skills Development 429 The Trainer’s Notebook 13.1: The TIMS (Training in Management Skills) Procedure 429 Error Training for Management Development 432 The Content of Management Development Programs 432 Conceptual Skills 432 Technical Skills 434 Interpersonal Skills 434 Methods of Management Development 436 Training Today 13.4: The Origins of Outdoor Wilderness Training 437 Management Education Programs 438 Training Today 13.5: Are Corporate Universities Useful? 438 Management Training Programs 439 Sources and Lengths of Management Training Sessions 440 On-the-Job Management Development 440 Is Management Development Effective? 443 Leadership Training: What’s Wrong and What Is Needed? 445 Summary 446 Key Terms 446 Discussion Questions 447 The Great Training Debate 447 Exercises 447 Case Incident: Middle Manager Burnout 449 Case Study: Market Research Inc. 449 References 451 Chapter 14 The Evolution and Future of Training and Development 455 Chapter Learning Outcomes 455 Introduction 457 The Evolution of Learning in Organizations 457 C xxi NEL ontents 00_fm.indd 21 9/14/18 9:30 AM A Multilevel Systems Model of Organizational Learning 458 Organization Level 458 Group Level 459 Individual Level 460 Linkages Between the Levels 460 The Changing Role of Learning Professionals 461 The Trainer’s Notebook 14.1: Learning Material and Activities in a Learning Environment 462 Making Training and Development Programs Effective 464 The Trainer’s Notebook 14.2: Making Training and Development Programs Effective 465 Summary 465 Key Terms 466 Discussion Questions 466 The Great Training Debate 466 Exercises 466 Running Case Study: Dirty Pools 467 References 468 Appendix Integrative Case Studies 469 Integrative Case Study 1: Training Security Guards 469 Integrative Case Study 2: The Learning a Culture of Safety Program 473 Index 479 ontents xxii 00_fm.indd 22 C NEL 9/14/18 9:30 AM A S I The management of human resources has become the most important source of innovation, competitive advantage, and productivity. More than ever, human resources management (HRM) professionals need the knowledge and skills to design HRM policies and practices that not only meet legal requirements but also are effective in supporting organizational strategy. Increasingly, these professionals turn to published research and books on best practices for assistance in the development of effective HR strategies. The books in the Nelson Series in Human Resources Management are the best source in Canada for reliable, valid, and current knowledge about practices in HRM. The texts in this series include the following: • Managing Performance through Training and Development • Management of Occupational Health and Safety • Recruitment and Selection in Canada • Strategic Compensation in Canada • Strategic Human Resources Planning • Industrial Relations in Canada The Nelson Series in Human Resources Management represents a significant development in the field of HRM for many reasons. Each book in the series is the first and now bestselling text in the functional area. Furthermore, HR professionals in Canada must work with Canadian laws, statistics, policies, and values. This series serves their needs. It is the only opportunity that students and practitioners have to access a complete set of HRM books, standardized in presentation, which enables them to access information quickly across many HRM disciplines. Students who are pursuing the HR professional designation through their provincial HR associations will find the books in this series invaluable in preparing for the knowledge exams. This one-stop resource will prove useful to anyone looking for solutions for the effective management of people. The publication of this series signals that the HRM field has advanced to the stage where theory and applied research guide practice. The books in the series present the best and most current research in the functional areas of HRM. Research is supplemented with examples of the best practices used by Canadian companies that are leaders in HRM. Each text begins with a general model of the discipline, and then describes the implementation of effective strategies. The books serve as an introduction to the functional area for the new student of HR and as a validation source for the more experienced HRM practitioner. Cases, exercises, and endnotes provide opportunities for further discussion and analysis. As you read and consult the books in this series, I hope you share my excitement in being involved and knowledgeable about a profession that has such a significant impact on the achievement of organizational goals, and on employees’ lives. es er the NEL xxiii bout Monica Belcourt, PhD, FCHRL Series Editor March 2018 00_fm.indd 23 9/14/18 9:30 AM A A Alan M. Saks Alan M. Saks, PhD, is a Professor of Human Resources Management at the University of Toronto in the Department of Management–UTSC and the Centre for Industrial Relations and Human Resources. Prior to joining the University of Toronto, Professor Saks was a member of the Department of Management in the Faculty of Commerce and Administration at Concordia University and in the School of Administrative Studies at York University. Professor Saks earned his HBA in Psychology from the University of Western Ontario, an MASc in Industrial/Organizational Psychology from the University of Waterloo, and a PhD in Organizational Behaviour and Human Resources from the University of Toronto. He conducts research in a number of areas in human resources management including recruitment, job search, training, employee engagement, and the socialization and on-boarding of new employees. His research has been published in refereed journals such as the Journal of Applied Psychology, Personnel Psychology, Academy of Management Journal, Journal of Organizational Behavior, Journal of Vocational Behavior, Human Resource Management, Human Resource Management Review, Journal of Business and Psychology, Journal of Organizational Effectiveness: People and Performance, and the International Journal of Training and Development, as well as in professional journals such as HR Professional Magazine, the Canadian Learning Journal, and Canadian HR Reporter. In addition to this text, he is also the author of Research, Measurement and Evaluation of Human Resources, and co-author of Organizational Behaviour: Understanding and Managing Life at Work. Robert R. Haccoun uthors the bout Educated at McGill University (BA 1969) and the Ohio State University (MA 1970, PhD 1973), Robert R. Haccoun is Full Professor of Psychology and Director of the Industrial and Organizational Psychology program at the Université de Montréal. Prior to returning to academia in 1978, Professor Haccoun was a research scientist for Bell Canada in Montreal. He is a founding member and past president of the Industrial-Organizational Psychology section of the Canadian Psychological Association. Professor Haccoun has led a number of research studies, mainly focused on training, absenteeism, and research methodology, and delivered papers at scientific conferences. His research articles are published in Canada in journals that include Canadian Psychologist, Canadian Journal of Behavioural Science, and the Canadian Journal of Administrative Studies. Internationally, his research is published in Personnel Psychology, the Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, the Journal of Organizational Behavior, and Applied Psychology: An International Review. He has contributed chapters to several books, and his co-authored research book, Comprendre xxiv 00_fm.indd 24 NEL 9/14/18 9:30 AM l’organisation: Approches de recherches, has been translated into Spanish. His statistics textbook, published in 2007, is in its second edition (2010). He is a reviewer for many scientific journals and has served on scientific advisory boards for provincial, national, and international research funding agencies. He has received a number of awards, including the Prize of Professional Excellence from Quebec’s Society of Work Psychology and the Teaching Excellence prize from his university. Active in the transfer of knowledge from academia to applied settings, he has also published non-technical articles and delivered conferences aimed at professional audiences. His consulting services have been called upon by organizations in Canada, the United States, and Europe. authors the about NEL 00_fm.indd 25 xxv 9/14/18 9:30 AM P Increasing global competition and economic challenges along with new and changing technology, an increasingly knowledge-based economy, skilled labour shortages and skills mismatches, and demographic changes in the workforce have made learning more important than ever for employees, organizations, governments, and society. These challenges require organizations to provide training and development programs for employees so that they have the knowledge, skills, abilities, and attitudes that are necessary to be productive and innovative, and so that organizations have the human capital they need to be competitive and survive. Continuous learning and skill development is a fundamental requirement for organizations today. The ability to compete, adapt, innovate, and achieve an organization’s goals and objectives in today’s increasingly competitive and uncertain environment depends in large part on the provision and effectiveness of training and development— the focus of this textbook. Since the last edition of this text was published, the science and practice of training and development has continued to advance. The increasing use of technology, learning on demand, blended approaches to training delivery, social media, mobile (m-) learning, microlearning, MOOCs, and synthetic learning environments are just some examples of the exciting developments in training and development. The eighth edition of Managing Performance through Training and Development reflects the many advances in both the science and practice of training and development. As with the five previous editions, the eighth edition is co-authored by Alan Saks and Robert Haccoun. The two authors have been involved in training research for over 20 years and have collaborated on numerous research projects. With the eighth edition, they have continued to develop and improve this textbook in many ways. // W ’ NE I E IG DI IO The eighth edition represents one of the most revised and restructured. In response to the excellent comments we have received from reviewers over the years, we have decided to remove the chapter on Organizational Learning (Chapter 2 in previous editions). As a result, there are now 14 rather than 15 chapters in the text. Although the chapter on organizational learning has been removed, many of the key topics from that chapter can still be found in the eighth edition. For example, human capital is now discussed in Chapter 1 (The Training and Development Process); workplace learning and informal learning can now be found in Chapter 2 (Learning and Motivation); learning culture is now defined in Chapter 3 (The Needs Analysis Process); communities of practice can now be found in Chapter 7 (Technology-Based Training Methods); and organizational learning, the learning organization, and the multilevel systems model of organizational learning are now in Chapter 14 (The Evolution and Future of Training and Development). Another major change to the eighth edition is the removal of the material on motivation theories from the chapter on learning and motivation (now Chapter 2). Many reviewers have told us that the motivation theories are covered in other courses and do NEL n t E hth E th n w s hat reface xxvi 00_fm.indd 26 9/14/18 9:30 AM not need to be covered in the text. Therefore, we have removed the material on intrinsic and extrinsic motivation, need theories, and expectancy theory. We have, however, retained the material on goal setting theory, proximal and distal goals, and goal orientation because it continues to be important in training research and practice. We have also made a number of changes to Chapter 14 (The Evolution and Future of Training and Development). The section on ethics has been moved to Chapter 8 (Training Delivery) and, as already indicated, the multilevel systems model of organizational learning, organizational learning, and the learning organization are now in Chapter 14. We have also added a new section in Chapter 14 on how to make training and development programs effective, along with a new Trainer’s Notebook that summarizes the main factors that contribute to the effectiveness of training and development programs. In addition to these major changes, you will also find new content (e.g., synthetic learning environments, Chapter 7); new definitions (e.g., learner engagement, Chapter 4); expanded coverage of existing topics (e.g., adult learning theory and learning styles, Chapter 2); updated material (e.g., training and development in Canada, Chapter 1); new tables and figures (Table 4.3: Bloom’s taxonomy of learning objectives, Chapter 4); new chapter-opening vignettes (e.g., Calfrac Well Services, Chapter 7); new Training Today features (Training Today 7.1, Virtual Reality Training at BNSF Railway, Chapter 7); and new The Trainer’s Notebook features (The Trainer’s Notebook 8.2, Getting Trainees Engaged) throughout the eighth edition of Managing Performance through Training and Development. // FE E As with the last several editions, our goal has been to make this textbook integrative by including features such as Make the Connection, Flashback and Flash Forward Case Questions, a Running Case Study, and an Integrative Case. Make the Connection alerts the reader to material in a chapter that has a connection to material that was presented in a previous chapter. For example, when reading about a self-management transfer of training intervention in Chapter 9 (Transfer of Training), the reader is reminded about material on self-regulation and social cognitive theory in Chapter 2 (Learning and Motivation). The purpose of this feature is to help students integrate material across chapters and understand how material in one chapter is related to material that was presented in a previous chapter. The Make the Connection feature appears in two ways. A puzzle icon in the margin alerts the reader to a Make the Connection feature and indicates the chapter and page number where the material was first presented. The connection is also explained to the reader in the text. This feature is meant to help readers understand how the material throughout the text is linked and interconnected. The Flashback case questions ask students to consider the case study in each chapter in terms of several of the chapters and topics discussed in previous chapters. For example, the flashback questions for the case study in Chapter 9 (Transfer of Training) ask students to consider the use of different instructional methods from Chapter 5, learning theories from Chapter 2, and training design activities from Chapter 4. These questions require students to integrate material from various chapters so they learn how material covered in previous chapters is relevant for each case study. The Flash Forward case questions, which follow the Flashback case questions, ask students to consider the case in each chapter in terms of a topic covered in the next chapter. This is meant to get students thinking about the next chapter before they actually study it. It is also another way to integrate material from different chapters when PREFACE xxvii s atur NEL 00_fm.indd 27 9/14/18 9:30 AM solving a particular case. For example, the Flash Forward question in Chapter 9 (Transfer of Training) asks about how the training program in the case was evaluated and how it should be evaluated, thereby getting students to begin thinking about the next chapter in the text, which is on training evaluation. These questions can be used by an instructor to encourage students to think about the next chapter after they have discussed a case in the context of the current chapter. The Flashback and Flash Forward questions allow instructors to use a case study from any chapter to teach material in other chapters. In other words, every case study in the text is a flexible case because instructors have the ability to decide how and when they will use it in terms of topics, content, and chapters. Another integrative feature is the Running Case Study. The Running Case Study (Dirty Pools) appears at the end of Chapter 1 and is followed by questions that pertain to the content of the chapter. Each subsequent chapter (with the exception of Chapter 13, Management and Leadership Development) has a series of chapter-relevant questions about the Running Case Study. Thus, instructors can relate the case to the material in every chapter as they cover it. This provides students with the continuity of returning to the same case throughout the course, and it allows them to apply the material from each chapter to the case, thereby building on each chapter in the process. Like the previous edition, this edition includes two Integrative Cases, both of which are in the Appendix. The purpose of this feature is to provide students with an opportunity to work on a case that requires them to use and apply material from most of the chapters. The relevant chapters for the integrative case questions are indicated so that instructors can use the integrative cases throughout the course as each chapter is covered. Alternatively, the integrative cases can be used at the end of a course as a review of all the chapters. This feature is meant to help students integrate and apply their learning throughout the text to one particular training situation. In addition to these integrative features, the eighth edition continues to provide students and instructors with a wide range of pedagogical features. For example, every chapter has a Case Study with questions on the main topics, principles, concepts, and theories covered in the chapter as well as flashback and flash forward questions. The eighth edition includes two new case studies that can be found in Chapters 3 (The Needs Analysis Process) and Chapter 7 (Technology-Based Training Methods). The new case study in Chapter 7 (The Korea Ginseng Corporation) is in addition to the case study that has been in previous editions of the text (E-Learning at Flotation Ltd.), and unlike other case studies in the text, it consists of several parts that are followed by a series of questions. This case study provides an example of how an actual organization used technology in the design of a new training program. The eighth edition also includes a new kind of case study question called Rewrite the Case. Every case study has one Rewrite the Case question. These questions require students to write a paragraph or two for the case study in order to rectify something important that is either absent or poorly performed. For example, the rewrite the case question in Chapter 8 (Training Delivery) asks students to add a section in which they describe the trainer making use of Gagné’s nine events of instruction. The Rewrite the Case questions serve a number of purposes. First, they require students to think carefully about how to make the training program described in the case more effective using material from the chapter. Second, students have to write their answer so that it fits into the case rather than just stating an answer to a question. And third, we think this type of question might be more fun and engaging for students. Instructors can use the Rewrite the Case questions for class discussion, assignments, or for class presentations. Whatever their use, the Rewrite the Case questions provide instructors xxviii 00_fm.indd 28 PREFACE NEL 9/14/18 9:30 AM with another way to teach the cases in addition to the main discussion questions and the flashback and flash forward questions. In addition to the Case Study, every chapter has a Case Incident that consists of a short description of a training problem followed by several questions. They can be used to begin a discussion at the start of class or later in class when students are ready to apply the chapter material. As with the previous edition, the eighth edition has two types of exercises in every chapter. In-Class Exercises can be completed during class time without any pre-class preparation. In-the-Field Exercises require students to gather information in the field by talking to HR and training professionals and by searching the Web to answer chapterrelevant questions. These exercises can also be used as projects and assignments. Each chapter has Discussion Questions and The Great Training Debate. The Discussion Questions focus on the main issues, principles, and theories described in a chapter. The Great Training Debate presents an issue for students to debate either early in a class to get them thinking about a topic or later in a class so they can begin to apply the chapter material to an important training issue. For example, The Great Training Debate in Chapter 1 asks students to debate whether all provinces should enact training legislation similar to the training law in Quebec. As in the previous edition of the text, every chapter begins with a chapter-opening vignette. Each vignette tells the story of an actual training program in an organization that is relevant to the material covered in the chapter. Many of the vignettes feature Canadian organizations, and the eighth edition includes several new ones that feature a variety of types of organizations (e.g., financial, health, service, law enforcement, manufacturing, educational, broadcasting, public transit) from across the country. As with previous editions, you will also find in each chapter The Trainer’s Notebook and Training Today features. The Trainer’s Notebook presents practical, hands-on information for trainers and practitioners (e.g., Chapter 8, The Trainer’s Notebook 8.2: Getting Trainees Engaged). The Training Today feature describes the latest in training research and practice (e.g., Chapter 9, Training Today 9.1: The Effects of Follow-Up Sessions on the Transfer of Training). We have also retained other features that appeared in previous editions, including Chapter Learning Outcomes at the beginning of every chapter; Key Terms, which appear in the text in bold and in the margins and are also listed at the end of each chapter; and a chapter-ending Summary that reviews the main content of each chapter. In summary, the eighth edition of Managing Performance through Training and Development offers a wide variety of pedagogical material in every chapter. Our intent is to provide instructors and students with many options for pedagogical material to choose from to best suit their learning needs, styles, and preferences. // S C EO E BOOK Managing Performance through Training and Development is structured in a manner that follows the sequence of the instructional systems design (ISD) model of training and development: needs analysis, training design and delivery, and training evaluation. The text begins with an overview of the training and development process. Chapter 1 describes the importance and benefits of training and development for employees, organizations, and society. “Training and development” is defined and presented in the larger context of the performance management process as well as the organization’s external environment, the organizational context, and the HR management system. Chapter 1 PREFACE xxix th f tur tru NEL 00_fm.indd 29 9/14/18 9:30 AM also describes the ISD model of the training and development process, which sets the stage for the subsequent chapters. The focus of Chapter 2 is learning, which is first and foremost what training and development is all about. We believe it is important for students to first understand learning before they begin to learn about training and development. Therefore, Chapter 2 describes how individuals learn and their motivation to learn. Formal and informal learning, learning outcomes, stages of learning, learning styles, learning theories, adult learning theory, goal-setting theory, and training motivation are described, along with their implications for training and development. The chapter concludes with a model of training effectiveness that shows the variables that influence learning and retention, and how learning and retention are related to individual behaviour, individual performance, and organizational effectiveness. The training effectiveness model is further developed in Chapters 4 and 9. The training and development process begins with a needs analysis, the focus of Chapter 3. This chapter describes the needs analysis process with particular emphasis on the three levels of needs analysis (organizational, task, and person) and how to determine solutions to performance problems. The chapter also describes the methods and sources of needs analysis and some of the obstacles to conducting a needs analysis. Chapter 4 describes how to design training and development programs. The chapter begins with an overview of the importance of training objectives and how to write them. The chapter then proceeds to cover the main steps involved in the design of training programs, including whether to purchase or design a training program; requests for proposals; training content; training methods; active practice and conditions of practice; active learning and adaptive expertise; and error-management training. One of the most important steps in the design of a training program is the choice of training methods. Given the vast array of training methods and instructional techniques available, Chapters 5, 6, and 7 are devoted to this topic. Chapter 5 describes the most frequently used off-the-job instructional methods, including lectures, discussions, case studies, case incidents, behaviour modelling training, role plays, simulations, games, and action learning. Each training method is defined and described, along with tips for trainers. The chapter also describes instructional media and concludes with a discussion of the factors to consider when choosing training methods and the importance of a blended approach. In Chapter 6, we turn to on-the-job training methods, including job instruction training, performance aids, job rotation, apprenticeship programs, coaching, and mentoring. As in Chapter 5, we define and describe each method and provide tips for trainers. The chapter concludes with a discussion of the advantages and disadvantages of off-thejob and on-the-job training methods. Chapter 7 is devoted to technology-based training methods. The chapter begins with a definition of technology-based training, followed by a description of computerbased training and e-learning. Distinctions are made between instructor-led training and self-directed learning, and between asynchronous and synchronous training. This is followed by a discussion of online and distance education, electronic performance support systems, the virtual classroom, social media and Web 2.0 technology, mobile (m-) learning, and synthetic learning environments. The chapter then discusses how to design technology-based training programs, their advantages and disadvantages, and the effectiveness of technology-based training methods. The focus of Chapter 8 is training delivery. The chapter begins with a description of a lesson plan and then describes the main components of a lesson plan, including the trainer, trainees, training materials and equipment, the training site, and scheduling training programs. The chapter also describes the role of ethics in training and development, xxx 00_fm.indd 30 PREFACE NEL 9/14/18 9:30 AM how to create a climate for learning, Gagné’s nine events of instruction, and common training delivery problems and solutions. One of the biggest problems facing trainers and organizations is the transfer of training, the focus of Chapter 9. The chapter begins with a review of the transfer problem and barriers to transfer, followed by a description of Baldwin and Ford’s (1988) model of the transfer process. The chapter then describes strategies that can be undertaken by managers, trainers, and trainees to improve the transfer of training before, during, and after training. The chapter also describes transfer of training interventions, post-training supplements, and the transfer system. Once a training program has been designed and delivered, it needs to be evaluated. Chapters 10 and 11 are devoted to training evaluation. In Chapter 10, we describe the purpose and barriers of training evaluation and three training evaluation models. The chapter also describes how to measure key variables for training evaluation and the different types of training evaluation designs. In Chapter 11, the focus shifts to the costs and benefits of training. Chapter 11 describes how to calculate the costs of training programs as well as the benefits (e.g., net benefit, benefit–cost ratio, return on investment, and utility). The importance of the credibility of estimates is also discussed. Chapters 12 and 13 describe the types of training programs that are provided in organizations. Chapter 12 describes the most common types of training that employees receive, including orientation training, essential skills training, technical and non-technical skills training, information technology training, computer software training, health and safety training, total quality management training, team training, sales training, customerservice training, sexual and racial harassment training, ethics training, diversity training, cross-cultural training, health and wellness training, and mental health training. Chapter 13 is devoted entirely to management and leadership development. This reflects both its importance to organizations and the large investments made by organizations in the development of management and leadership talent. The chapter begins with definitions of “management” and “management development.” It then describes the core managerial roles and functions, management skills, emotional intelligence, and transactional, transformational, charismatic, and authentic leadership. Models of management skill development are also described, as well as error training for management development and the content and methods of management development programs. The chapter concludes with a discussion of research on the effectiveness of management development. Finally, Chapter 14 concludes the text with a discussion of the evolution and future of training and development. The chapter begins with a discussion of the evolution of learning in organizations. This is followed by a description of a multilevel systems model of organizational learning that highlights the importance of learning at the individual, group, and organization levels. The changing role of learning professionals is then discussed along with the skills and competencies required by learning professionals today and in the future. The chapter concludes with a review of the main factors that make training and development programs effective. Throughout this textbook we have tried to maintain a balance between theory and research on the one hand, and practice and application on the other. We have also tried to provide examples of the concepts and principles presented in the text by showcasing effective training programs. Overall, we have tried to provide a thorough and comprehensive text on training and development that reflects both the science and practice of the field as well as our excitement and genuine love of the topic. We hope that the combination of text material and the many pedagogical features will motivate students to learn about the science and practice of training and development. PREFACE xxxi NEL 00_fm.indd 31 9/14/18 9:30 AM // C O RE O CE The Nelson Education Teaching Advantage (NETA) program delivers research-based instructor resources that promote student engagement and higher-order thinking to enable the success of Canadian students and educators. Visit Nelson Education’s Inspired Instruction website at nelson.com/inspired to find out more about NETA. The following instructor resources have been created for Managing Performance through Training and Development, Eighth Edition. Access these ultimate tools for customizing lectures and presentations at nelson.com/instructor. NE TE B K This resource was written by one of the book’s co-authors, Alan Saks. It includes over 480 multiple-choice questions written according to NETA guidelines for effective construction and development of higher-order questions. Also included are over 350 true/ false questions and over 120 short-answer questions. The NETA Test Bank is available in a new, cloud-based platform. Nelson Testing Powered by Cognero® is a secure online testing system that allows instructors to author, edit, and manage test bank content from anywhere Internet access is available. No special installations or downloads are needed, and the desktop-inspired interface, with its drop-down menus and familiar, intuitive tools, allows instructors to create and manage tests with ease. Multiple test versions can be created in an instant, and content can be imported or exported into other systems. Tests can be delivered from a learning management system, the classroom, or wherever an instructor chooses. Nelson Testing Powered by Cognero for Managing Performance through Training and Development can also be accessed through nelson.com/instructor. NE PO E OI Microsoft® PowerPoint® lecture slides for every chapter have been adapted by one of the book’s co-authors, Alan Saks. There is an average of 45 slides per chapter. The slides provide a basic outline of the chapter and many feature key figures, tables, and photographs from Managing Performance through Training and Development, Eighth Edition. NETA principles of clear design and engaging content have been incorporated throughout, making it simple for instructors to customize the deck for their courses. GE LI s ur s r t xxxii PREFACE NEL nt rp w brary Ima ta an st ta Instru This resource consists of digital copies of figures, short tables, and photographs used in the book. Instructors may use these JPEGs to customize the NETA PowerPoint or create their own PowerPoint presentations. An Image Library Key describes the images and lists the codes under which the JPEGs are saved. Codes normally reflect the Chapter number (e.g., C01 for Chapter 1), the Figure or Photo number (e.g., F15 for Figure 15), and the page in the textbook. C01-F15-pg26 corresponds to Figure 1-15 on page 26. 00_fm.indd 32 9/14/18 9:30 AM N TA C O IDE This resource was written by Steven G. Robinson at Georgian College. It is organized according to the textbook chapters and addresses key educational concerns, such as typical stumbling blocks students face and how to address them, as well as suggested classroom activities to give you the support you need to engage your students in the classroom. Other features include chapter summaries, sample lecture outlines, and suggested answers to end-of-chapter exercises, case incidents, and case studies. // S DE A CI IE MI D Stay organized and efficient with MindTap—a single destination with all the course material and study aids you need to succeed. Built-in apps leverage social media and the latest learning technology. For example, • ReadSpeaker will read the text to you. • Flashcards are pre-populated to provide you with a jump start for review—or you can create your own. • You can highlight text and make notes in your MindTap Reader. Your notes will flow into Evernote, the electronic notebook app that you can access anywhere when it’s time to study for the exam. • Self-quizzing allows you to assess your understanding. • Videos provide additional insights into topics discussed in the textbook. r t Instru Gu NEL xxxiii s llar n nt PREFACE tap n tu E Visit nelson.com/student to start using MindTap. Enter the Online Access Code from the card included with your text. If a code card is not provided, you can purchase instant access at NELSONbrain.com. 00_fm.indd 33 9/14/18 9:30 AM A W DG Writing a textbook requires the support and assistance of many people who directly or indirectly make important contributions to the process and outcome. We wish to thank all those who have played important roles in our lives and in writing this edition as well as previous editions of this text. First, we thank all the reviewers who provided us with insightful and constructive feedback over the past few editions that led to many changes and improvements: Lynne Bard, Conestoga College Gordon Barnard, Durham College Lisa Bering, Humber College Anna Bortolon, Conestoga College Holly Catalfamo, Niagara College Alfonsina Chang, Seneca College Genevieve Farrell, Ryerson University Susan Fitzrandolph, Ryerson University Morai Forer, Saskatchewan Polytechnic Bernadette Gatien, Saint Mary’s University Stefan Gröschl, University of Guelph Jamie Gruman, University of Guelph John Hardisty, Sheridan College Jill Leedham, Mohawk College Donna Leibham, University of Calgary Barbara Lipton, Seneca College Edward Marinos, Sheridan College Kenneth McBey, York University Thomas Medcof, University of Guelph Jody Merritt, St. Clair College Grace O’Farrell, University of Winnipeg Louis Pike, Ryerson University Steve Robinson, Georgian College Carol Ann Samhaber, Algonquin College Enda Sooster, Georgian College Jennifer Souch, Durham College Tracey Starrett, The Starrett Group Wiktor J. Tutlewski, Kwantlen Polytechnic University Michelle White, Fanshawe College Valerie Whyte, University of New Brunswick Jeff Young, Saint Mary’s University ments le ckno Each one contributed to this text by lending us their expertise and by taking the time to share their teaching experiences. Their comments and feedback have helped us to improve each edition of this text. Second, we wish to express our gratitude to the team at Nelson Education that helped us develop and produce this text: Publisher, Jackie Wood; Content Manager, xxxiv 00_fm.indd 34 NEL 9/14/18 9:30 AM Elke Price; Production Project Manager, Shannon Martin; Executive Marketing Manager, Amanda Henry; and Permissions Manager, Lynn McLeod. We are grateful for their support and all their hard work and feel very lucky to be working with a team of dedicated professionals who care so much about what they do and their authors. Finally, we also wish to thank our families, who have had to endure the burden of living with busy, tired, and overworked authors who sometimes don’t have time to play or sleep! Alan Saks is grateful to Kelly, Justin, and Brooke for making it all worthwhile. Robert Haccoun is grateful to his family, especially the little ones: Orli, Amit, Erez, and Micah. Our love for them grows as they do. Alan M. Saks Robert R. Haccoun 00_fm.indd 35 ments le ckno NEL A W DG xxxv 9/14/18 9:30 AM 00_fm.indd 36 9/14/18 9:30 AM CHAPTER 1 T V C AF L T NING OU INING ND M N P SS M S DING IS ,Y US U DB B : • 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 • 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 a ra roce t elop e e to le a e l ho tco hapter ear chapter th ter rea o De he NEL 01_ch01.indd 1 9/14/18 6:51 AM NP Several years ago police officers at the Edmonton Police Service (EPS) participated in a one-day mental health training program on how to effectively recognize and deal with individuals suffering from mental illness and in crisis situations. Officers participated in role-playing exercises involving highly trained actors who represented various mental illnesses. According to Sgt. David DeMarco, the officer in charge of the tactics training team, the program filled a void in officer training, since new recruits at the EPS receive training on mental health issues but there is very little related training after that. The goal of the training was to improve interactions between police officers and mentally ill individuals by improving officers’ empathy, communication skills, and ability to de-escalate potentially difficult situations. The program encouraged police behaviours such as verbally expressing empathy, maintaining eye contact, using nonthreatening body language, “mirroring” the actor’s movements, and sharing non-threatening information. More than 650 officers from the police service participated in the training program. Each officer went through six realistic scenarios: • • • • • • a depressed individual who was belligerent and potentially violent with a weapon nearby a psychotic individual who was experiencing hallucinations an excited individual behaving strangely on a public street an individual with presumed alcohol dependence collapsed on the street a couple arguing about the man’s gambling addiction a depressed individual who may have overdosed ce Ser ce ol to 2 VI Police officers at Edmonton Police Services participated in a mental health training program to recognize and deal with individuals suffering from mental illness. Sgt. DeMarco, especially since other types of in-service training usually have police officers acting the part rather than professionally trained actors. The actors also offered feedback to the officers after the role playing, describing how the officers’ actions made them feel. For example: “I was frightened when you came that close to me.” Supervisors and psychologists also provided feedback to the officers after they dealt with each scenario. They offered tips for how to improve their interaction, such as changing their body language to mirror that of the individual, looking her in the eye, and sharing their names with her. Six months after the program, the participating officers were able to deal with persons with mental illness more effectively and better recognize mental health issues. There was a 40 percent increase in officers’ ability to recognize mental health issues as the reason for a call. There was also an improvement in police officers’ ability to communicate with the public and to verbally de-escalate a situation, and in their level of empathy in dealing with the public. Participating officers also used less physical force or fewer weapons when interacting with persons who had a mental illness. Officers who participated in the training program also improved their efficiency in dealing with mental health issues. They were able to spend less time on calls, which translated into a cost savings of more than $80,000 in the six months after the program. The EPS mental health training program is now part of regular training. In a report to the Canadian Association of Chiefs of Police, the Mental Health Commission of Canada Managing Performance through Training and Development NEL o According to Peter Silverstone of the University of Alberta, who helped develop the program, “We were trying to reflect the common interactions the police have and trying to get them to see things in a different light than they may have originally. For example, the manic presentation was very similar to an individual who may be taking a stimulant or other drugs, so we tried to get the police to not take the situation for granted and start to think about what actually may be presented to them.” The actors who portrayed the individuals with mental illnesses really enhanced the officers’ training, said I Courtesy of the Edmonton Police Service EDM N 01_ch01.indd 2 9/14/18 6:51 AM (MHCC) commended the Edmonton Police Service for how its officers deal with people in crisis.1 Sources: Silliker, A. (2013, May 20). Mental illness training for cops effective: Study. Canadian HR Reporter, 26(10), 1, 6. Reprinted by permission of Canadian HR Reporter. © Copyright Thomson Reuters Canada Ltd. (2013), Toronto, Ontario, 1-800-387-5164. Web: www. hrreporter.com; Krameddine, Y. I., DeMarco, D., Hassel, R., & Silverstone, P. H. (2013, March 18). A novel training program for police officers that improves interactions with mentally ill individuals and is cost-effective. Frontiers in Psychiatry, doi:10.3389/fpsyt.2013.00009; Maurier, R. (2013, March 18). Helping police protect and serve people with mental illness. University of Alberta, http://uofa.ualberta. ca/news-and-events/newsarticles/2013/. . . (2014, September 5); Edmonton cops commended by Mental Health Commission. Edmonton Sun, http://www.edmontonsun.com/2014/09/05/edmonton-copscommended-by-mental-health-commission (2014, September 5); Specialized training helps officers safely deal with people in crisis, Edmonton Police Media Release, http://www.edmontonpolice.ca/ News/MediaReleases/Specializedtraininghelpsofficerssafel. . . . // INTRODUCT ON The EPS’s mental health training program is a great example of the role and importance of training and development in organizations. The program ensures that police officers are prepared to answer calls that involve persons who have a mental illness and are in a crisis situation. It is also an excellent example of how to design, deliver, and evaluate training and development programs, just what this book is all about. It is not hard to understand how investments in the training and development of employees can improve an organization’s success and competitiveness. In fact, later in this chapter you will learn how training and development benefits employees, organizations, and society. But have you ever wondered how employee training benefits you and can affect your life? Consider the police shooting deaths of several mentally ill people in Toronto over the last 15 years. Five emotionally disturbed people were shot by police in Toronto between 2002 and 2012, and 18-year-old Sammy Yatim was shot on a streetcar in 2013. An inquest into the deaths of three of the fatal shootings made 74 recommendations. One of those recommendations calls for police officers to consider mental state and whether a person is in crisis when advancing with a sharp weapon. However, police officers are trained to react to behaviour when facing a threatening situation regardless of a person’s mental health. As a result, many of the recommendations call for changes to police training, such as emphasizing verbal de-escalation techniques. The report recommends that officers be trained to stop shouting commands such as “Stop, police!” or “Drop the weapon!” and try different defusing strategies if an emotionally disturbed person has failed to respond to the standard police commands. The report also recommends that training emphasize that there is no fixed distance at which shooting is necessary.2 In 2014, a landmark report by former Supreme Court Justice Frank Iacobucci into the use of lethal force by the Toronto Police Service made 84 recommendations to improve police officers’ interactions with emotionally disturbed or mentally ill persons in crisis situations. Several of the recommendations call for training that emphasizes containment of crisis situations, de-escalation techniques, and communication instead of force, making all officers complete a mental health first aid course, and additional mental health training for sergeants. According to the report, “Police must be trained not only in techniques for calming a situation or negotiating with someone in crisis, but also in areas of recognizing crisis symptoms, assessing the physical and mental capabilities of the subject, anticipating unexpected responses to routine commands or actions, exercising discretion in decisions to apprehend, arrest or divert an individual, and combatting the effects of stigma on their decisions making” (p. 144).3 C 1 The Training and Development Process 3 01_ch01.indd 3 The Training and Development Process hapter i NEL 9/14/18 6:51 AM In 2017, an inquest into the police shooting death of Michael MacIsaac emphasized the need for better de-escalation techniques for police officers and the need for mental health training. In particular, it recommended extending police training at the Ontario Police College by one week to focus exclusively on de-escalation training and training on the use of different communication techniques when an individual does not respond to shouting of commands. Thus, like the Iacobucci report, a major recommendation is for better police training in dealing with individuals in crisis situations and in the use of more effective methods of de-escalation.4 The EPS mental health training program described in the chapter-opening vignette is consistent with many of the recommendations of both these inquires and the Iacobucci report. Recall that six months after the EPS mental health training program began, participating officers were able to deal with persons with mental illness more effectively and better recognize mental health issues, and there was a 40 percent increase in officers’ ability to recognize mental health issues as the reason for a call. There was an improvement in police officers’ ability to verbally de-escalate a situation, and officers used less physical force or fewer weapons when interacting with persons who had a mental illness. Thus, mental health training for police officers can make a big difference in police officers’ attitudes and behaviour, and save lives. As you can see, employees who are not properly trained can make mistakes that result in accidents that threaten public safety and well-being. While these examples are among the most extreme, it is important to recognize that poorly trained employees produce defective products and provide poor service. Thus, 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. To learn more about the potential consequences of failing to provide adequate training, see Training Today 1.1, “The Risks and Consequences of Failing to Provide Training.” T INING T D Y T R 1.1 C Q F Although much is known about the benefits of training, much less is known about the risks and consequences of failing to provide training, especially when it comes to occupational health and safety and harassment. There are many negative outcomes that are possible when an organization does not provide proper training. It can be as simple as an employee or department failing to perform their job adequately because they did not receive the necessary skills training and development. However, it can be much more serious, such as when there are lapses in safety training or training on workplace policies that can have legal consequences. Failure to provide training on proper procedures, safety training, or ergonomics can result in disability claims, which can be very costly for organizations. There are also legal consequences for organizations that do not provide proper safety training and Workplace G P V T G Hazardous Materials Information System (WHMIS) training in compliance with the Occupational Health and Safety Act. In addition, directors and owners of organizations are susceptible to personal liability if they are aware of unsafe working conditions and allow them to continue. In 2015 two corporate directors with NewMex Canada, a furniture retailer based in Brampton, Ontario, received jail time and a $250,000 fine for failing to provide health and safety training which, along with other safety violations, was found to be the cause behind the death of a forklift operator. The two directors were charged with failing to take reasonable care and NewMex pleaded guilty to failing to provide information, instruction, and supervision to a worker regarding fall protection and working from a height. There can also be consequences for failing to provide proper training on psychological safety and workplace (continued ) Managing Performance through Training and Development NEL rainin ide ro to ailin o a of uences onse and isks he ra 4 01_ch01.indd 4 9/14/18 6:51 AM harassment. For example, in 2015 the Canadian Olympic Committee came under fire after receiving media attention for a so-called “culture of harassment” within the organization. Former president Marcel Aubut stepped down after being accused by multiple women of unwanted touching and sexual comments. Investigators found that there was insufficient training on workplace harassment at the organization and recommended education, including a mandatory training session for staff and board members on harassment policies and procedures. The organization received a significant amount of negative media attention and reputational damage as a result of the incident. Failing to provide training on workplace harassment can also lead to employees taking stress leave, and employees who are injured as a result of an organization’s failure to provide adequate training must be accommodated as required under the human rights code. Thus, failure to provide necessary and adequate training can result in considerable risks to employees and negative consequences for management and organizations. Source: Based on Bernier, L. (2016, February 8). More than just a good idea or nice-to-have: A look at the potential consequences for failing to provide adequate training. Canadian HR Reporter, 29(2), 14–15. For organizations, success and competitiveness are highly dependent on training and development. In fact, continuous learning and skill development has become a key factor for the success of individuals and organizations. Whether an organization is adopting new technology, improving quality, or simply trying to remain competitive, training and development is a critical and necessary part of the process. A report by the Conference Board of Canada on learning and development in Canadian organizations concluded that continuous learning and the transfer of knowledge are key factors in fostering creativity and promoting organizational excellence.5 Not surprisingly, training and development is one of the distinguishing characteristics of the best companies to work for in Canada.6 Therefore, it should not surprise you that organizations invest millions of dollars each year on training and development. This textbook will teach you about the training and development process and how to design, deliver, and evaluate effective training and development programs. In this chapter, we introduce you to the topic of training and development and describe the training and development process. We begin with a discussion of performance management, since training and development is first and foremost about managing performance in organizations. // PERFORMANCE ANAGEMENT As the title of the textbook indicates, training and development is about managing performance. This is especially important in light of a recent study that found that half of Canadian workers believe they are less productive at work than they could be. One of the causes for this is a lack of training and development. A lack of productivity also highlights the need for performance management.7 Performance management is the process of establishing performance goals and designing interventions and programs to motivate and develop employees to improve their performance and, ultimately, organization performance. This process signals to employees what is really important in the organization, ensures accountability for behaviour and results, and helps improve performance.8 C 1 The Training and Development Process 5 01_ch01.indd 5 The Training and Development Process hapter M NEL Performance management The process of establishing performance goals and designing interventions and programs to motivate and develop employees to improve their performance 9/14/18 6:51 AM IGU 1.1 P F T M N Performance Expectations and Goals N G M N P SS Monitor Performance and Provide Feedback Performance Evaluation and Consequences Employee Training and Development S goals Goals that are specific, measurable, attainable, relevant, and have a time frame T T IN ’S Performance management is not a single event, like a performance appraisal or a training program; rather, it is a comprehensive, ongoing, and continuous process that involves various activities and programs designed to develop employees and improve their performance.9 As shown in Figure 1.1, the performance management process involves several components that are closely related to one another. The starting point of the process is defining performance, setting performance expectations, and setting performance goals. Managers meet with employees to discuss performance expectations and agree on performance goals. These goals should stem from organizational or department-level goals and objectives. This ensures that employee goals are aligned with department and organizational goals.10 The goal-setting process should make the organization or superordinate goal clear and concrete to employees. Managers can do this by setting SMART goals—goals that are specific, measureable, attainable, relevant, and have a time frame.11 To learn more about SMART goals, see the Trainer’s Notebook 1.1. B K 1.1 S SMART goals are specific, measurable, attainable, relevant, and have a time frame. pecific: oals must be specific regarding the behaviour to be performed or the level of performance. Specific goals are more effective than general or do-your-best goals. easurable: It must be possible to determine whether goals have been achieved. Therefore, when setting goals the criteria of success must be indicated. Attainable: oals should be challenging but attainable. oals should not be too difficult or too easy. Relevant: oals should be relevant and meaningful to the individual. They should be clearly linked to unit and organization objectives. Time frame: A time frame within which the goal will be achieved must be indicated. Source: Latham, . P. (2003). oal setting: A five-step approach to behavior change. Organizational Dynamics, 32, 309–318. roce t e e a Ma ce a or er re 6 Managing Performance through Training and Development NEL oo Note er ra G G G G M S G G Goals mart he MART he F Once the manager and employee have set SMART goals, it is important for managers to monitor employee performance and provide ongoing feedback so that employees know whether they are accomplishing their goals. For example, at First West Credit 01_ch01.indd 6 9/14/18 6:51 AM Union, employees identify their performance goals and then discuss them with their manager, who ensures that the goals tie back to the company’s core strategic objectives. Employees obtain feedback from colleagues during the year, which is then used as part of the review and assessment with their manager.12 In addition to informal feedback, a key part of the performance management process is a formal performance evaluation. This usually involves the use of a standard rating form on which the manager and employee (self-appraisal) evaluate the employee’s performance on a number of behavioural/performance dimensions and review the extent to which the employee has accomplished his/her goals. The performance evaluation also involves performance consequences to reward employees for accomplishing their goals and serves to reinforce employee behaviour and performance. The process then repeats itself with the setting of new or revised performance expectations and goals.13 A critical component of the performance management process is employee training and development and the creation of a development plan for employees. This involves programs and activities that are designed to help employees achieve their goals and improve their performance. This, of course, is where training and development fits into the performance management process. Employee training and development can include formal training and development programs in the classroom as well as on-thejob training such as coaching and mentoring. At First West Credit Union, learning and development are a key part of the performance management process.14 Employee training and development is shown in the middle of Figure 1.1 because it connects to all of the other components of the performance management process. In other words, each of the components of the performance management process provides information on the developmental needs of employees.15 For example, when setting goals it might be determined that attending a training program will help an employee achieve his/her goals. Thus, part of the goal-setting process might include a development plan that will enable employees to achieve their goals. Feedback might suggest the need for additional training to address an employee problem or weakness. The formal performance evaluation identifies employee strengths and weaknesses as well as areas that need improvement. This has further implications for employee development and the creation of an employee development plan that will set the stage for the next round of the performance management process.16 Thus, each component of the performance management process can identify an employee’s training needs and lead to action plans for employee training and development. In summary, performance management is a key factor for the improvement and management of employee performance, and training and development is a central and necessary component of the performance management process. But what exactly is training and development? // RA N NG AND EVELO MENT Training and development is one of the most important ways that performance can be improved in organizations. Training refers to formal and planned efforts to help employees acquire knowledge, skills, and abilities to improve performance in their current job.17 Training usually consists of a short-term focus on acquiring skills to perform one’s job. You have probably experienced this type of training, such as when your company sends you to a workshop to learn a software package or to learn how to better serve customers. The goal is to help you learn to do your current job better. As indicated at the beginning of the chapter, the objective of the Edmonton Police Service mental health training program is to improve interactions between police officers 1 The Training and Development Process 7 T 01_ch01.indd 7 The Training and Development Process D i C p hapter i T NEL raining Formal and planned efforts to help employees acquire knowledge, skills, and abilities to improve performance in their current job 9/14/18 6:51 AM evelopment Formal and planned efforts to help employees acquire knowledge, skills, and abilities required to perform future job responsibilities Human capital The knowledge, skills, and abilities of an organization’s employees Social capital The social resources that an individual obtains from participation in a social structure and mentally ill individuals by improving officers’ empathy, communication skills, and ability to de-escalate potentially difficult situations. Development refers to formal and planned efforts to help employees acquire the knowledge, skills, and abilities required to perform future job responsibilities and for the long-term achievement of individual career goals and organizational objectives. The goal is to prepare individuals for promotions and future jobs as well as additional job responsibilities. This process might consist of extensive programs, such as leadership development, and might include seminars and workshops, job rotation, coaching, and other assignments. The goal is to prepare employees for future responsibilities and often for managerial careers. You can read more about management development in Chapter 13. Thus, 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. It has been found to be a key determinant of an organization’s performance and one of the most important resources for competitive advantage.18 Human capital development is one of the top areas of concern for organizations, and increased training and development for employees is one of the top strategies for developing human capital.19 Training and development can also facilitate the development of social capital, which refers to the social resources that an individual obtains from participation in a social structure. It has to do with relationships within an organization and between members of the organization and external stakeholders. Like human capital, social capital can also be used by employees to achieve their goals, and it contributes to employee and organization performance.20 In summary, through training and development, organizations strive to develop human capital and social capital to improve individual and group performance, and ultimately the organization’s performance. As described in the next section, training and development benefits organizations, employees, and society at large. // BENEF T OF RA N NG AND EVELO MENT Organizations that invest in the training and development of their employees reap many benefits. But so do employees and the society in which they live. In this section, we describe the benefits of training and development to organizations, employees, and society. As you will see, training and development plays a critical role in the success and well-being of organizations, employees, and society. BENEF T TO RGAN ZAT ON Organizations that invest in training and development benefit in many ways that help them obtain a sustained competitive advantage. Training and development can facilitate an organization’s strategy, increase effectiveness, and improve employee recruitment, engagement, and retention. STRATEGY The goal of all organizations is to survive and prosper. Training and development can help organizations achieve these goals. Organizations can be successful by training employees so they have the knowledge and skills necessary to help achieve organization NEL p D i i T s Managing Performance through Training and Development s i i O s i i D 8 01_ch01.indd 8 9/14/18 6:51 AM goals and objectives. By linking training to an organization’s strategy, training becomes a strategic activity that operates in concert with other organization programs and activities to achieve an organization’s strategic business objectives. We will have more to say about what makes training strategic later in the chapter. FFECT VENE NEL 01_ch01.indd 9 The Training and Development Process hapter ss i E There is a calculable benefit to training employees. Trained employees can do more and better work, make fewer errors, require less supervision, have more positive attitudes, and have lower rates of turnover. Trained employees also produce higher-quality products and services.21 These benefits have a positive effect on an organization’s competitiveness and performance. The link between training and organization performance is strongly supported by research. For example, a survey conducted by the American Management Association found that companies that expanded their training programs showed gains in productivity and larger operating profits.22 In another study, a 10 percent increase in training produced a 3 percent increase in productivity over two years.23 A review of research on training and organizational effectiveness found that training is positively related to human resource outcomes (e.g., employee attitudes, motivation, and behaviours), organizational performance outcomes (e.g., performance and productivity), and financial outcomes (e.g., profit and financial indicators).24 In addition, research has found that companies that invest more in training have higher revenues, profits, and productivity growth than firms that invest less in training.25 Research by the Conference Board of Canada found that organizations that spend the most on training and development outperform those that spend the least on training and development on a number of performance indicators, such as employee satisfaction, customer satisfaction, profitability, and productivity.26 A study of companies in South Korea found that those that invest more in workplace learning achieve higher levels of learning outcomes (i.e., employee competence, labour productivity, and employee enthusiasm) and financial performance. In other words, investment in workplace training influences organizational performance through learning outcomes.27 Training has also been found to be more effective than other interventions. For example, a study that compared the impact of human resource practices to practices that place greater emphasis on operational initiatives, such as advanced manufacturing technology, found that the human resource practices were directly related to the productivity of 308 companies over 22 years, while none of the operational manufacturing practices related to productivity. Both empowerment and extensive training were related to productivity, and together they accounted for a 9 percent increase in value added per employee.28 Training is so important for organizations that it can even make the difference between the success or failure of a business. For example, research has found that a key factor associated with the success of a franchisee is the length of training (the number of weeks that franchisees underwent initial training). The more robust and lengthy the training program for the franchisee, the more likely the franchisee is to succeed. Franchises with the shortest franchisee training programs are the most likely to fail.29 To learn more about the effects of training on productivity and firm profits, see Training Today 1.2, “The Effects of Training on Firm Productivity and Profits.” C 1 The Training and Development Process 9 9/14/18 6:51 AM T INING T D Y T E 1.2 T G F P Is training related to firm profits? If so, how? To find out, Youngsang Kim and Robert Ployhart conducted a study of 359 firms over a period of 12 years before (2000–2007) and after (2008–2011) the recent recession. They argue that training develops firm-specific human capital resources that will result in higher productivity. Furthermore, greater productivity will provide greater financial resources that can be used for profit-generating opportunities, which in turn will lead to greater profit growth in a strong and growing economy (the period before the recession). In a weak economy or during economic downturns (the period during and after the recession), firms that provide more extensive training should be more prepared and able to quickly recover from an economic downturn. This is because the slack financial resources that result from higher productivity can be used to counter the effects of a recession. Training was measured in terms of the overall percentage of full-time employees trained internally on the V P job. Organizations with a higher percentage of employees who are trained on the job should have greater firmspecific knowledge and skills, which will increase productivity. As predicted, firms with more internal training had greater productivity and profit growth, and the relationship between training and profit growth was due in part to greater productivity. The authors also found that firms with more extensive training generated resources that help them to buffer and more quickly recover from the recession. The results of this study demonstrate that training influences firm profit growth through its effect on productivity. In other words, the effects of training on profit growth are due to its direct effect on productivity. The most important practical implication of this study is that firms that use more extensive internal training produce and perform better than competitors and recover more quickly from a recession. Source: Kim, Y., & Ployhart, R. E. (2014). The effects of staffing and training on firm productivity and profit growth before, during, and after the great recession. Journal of Applied Psychology, 99(3), 361–389. M LOYEE ECRU TMENT, NGAGEMENT, AND ETENT ON rofits and ity roducti 10 Managing Performance through Training and Development NEL i R E i o a irm rainin of ffects he on R p E ra Work engagement A positive, fulfilling, work-related state of mind that is characterized by vigour, dedication, and absorption Training and development is considered an effective tool for attracting and retaining top talent, especially for employees under the age of 30 who consider their career growth and professional development more important than salary.30 Training is often used by organizations to increase their attractiveness to prospective employees and to retain their current employees. For many organizations today, training is the number-one attraction and retention strategy.31 For example, construction company EllisDon offers employees a range of courses and programs through its EllisDon University (EDU), which is part of the company’s attraction and retention strategy.32 At CIBC, continuing education and training is an important business and retention tool.33 Keller Williams Realty Inc. invites competitors and prospects to their training programs, since training plays a major role in the recruitment of agents.34 An organization that fails to provide training opportunities to its employees will be at a disadvantage in attracting new employees and retaining current ones. In one study, 99 percent of the respondents said that there are job areas in which training would be useful to them, and in which training decreases their willingness to move to another company.35 Research conducted by the Conference Board of Canada found that organizations that spend more per employee on training and development have significantly lower voluntary and involuntary turnover rates.36 Training and opportunities for learning and development also have implications for employees’ work engagement. Work engagement is a positive, fulfilling, work-related 01_ch01.indd 10 9/14/18 6:51 AM state of mind that is characterized by vigour, dedication, and absorption. Vigour involves high levels of energy and mental resilience while working; dedication refers to being strongly involved in one’s work and experiencing a sense of significance, enthusiasm, and challenge; and absorption refers to being fully concentrated and engrossed in one’s work.37 Employees who receive formal workplace training report that it makes them feel more engaged in their job. Opportunities for learning and development and a positive learning climate have also been found to be positively related to employees’ work engagement, and work engagement is positively related to employee attitudes, behaviours, job performance, and well-being as well as organizational performance. Thus, when employees have opportunities for learning, training, and development they are more likely to be engaged.38 BENEF T TO M LOYEE Training and development also has benefits for employees. These can be categorized as internal or intrinsic to an individual, such as knowledge and attitudes, and those that are external to an individual, such as salary. INTR N C BENEF T Trained employees benefit by acquiring new knowledge and skills that enable them to perform their jobs better. Research has shown that training has a positive effect on employees’ job behaviour and job performance.39 In addition to improving knowledge and skills, trained employees also develop greater confidence or self-efficacy (see Chapter 2 for a discussion of self-efficacy) in their ability to perform their job. They describe feelings of increased usefulness and belonging in the organization, and they seek out opportunities to fully exploit their new skills and abilities.40 Trained employees also have more positive attitudes toward their job and organization.41 XTR N C BENEF T Extrinsic benefits include things such as higher earnings as a result of increased knowledge and skills, improved marketability, greater security of employment, and enhanced opportunities for advancement and promotion. A number of studies have found that company-sponsored training programs increase workers’ wages by 4 to 11 percent.42 According to one study, immigrants to Canada who have completed apprenticeship training are more likely to be employed and to earn more money than immigrants who have only a high school diploma.43 Many workers who have been laid off attend training programs to acquire new skills to obtain employment.44 BENEF T TO SOC ETY Training and development also has benefits for society that extend beyond the workplace. The training and development that organizations provide for their employees has implications for public health and safety, and it helps to create an educated and skilled population that benefits the economy and a country’s standard of living. s p E s s i si 11 s i 1 The Training and Development Process i 01_ch01.indd 11 The Training and Development Process hapter si E i s i C i i NEL 9/14/18 6:51 AM DUCATED AND M LOYED PO ULAT ON Education and training are fundamental for reducing unemployment, especially among youth, where it has been rising.45 The knowledge and skills that employees acquire through training help to create an employable, educated, and skilled workforce. For example, some organizations offer literacy and numeracy training for employees who did not obtain it through regular educational channels but who require it to perform their jobs. This training also enables employees to function more effectively in their daily lives and therefore has a number of societal benefits. Employees who have participated in organization-sponsored training programs report using their new skills to better manage their personal lives. They are more likely to be able to read instructions for assembling products and to be able to calculate bills and expenses. They are also more likely to be able to find employment if they are laid off or their employer closes a plant. HEALT AND SAFETY As is evident from the examples provided at the beginning of the chapter, training and development has important implications for public health and safety. Effective training programs not only improve employee performance, but they can also reduce errors, improve safety, and even save people’s lives. Training can reduce life-threatening errors in high-risk environments and improve the safety of employees and the public. A good example of the effect of training on public health and safety is the Edmonton Police Service’s mental health training program, which was described in the chapteropening vignette. Another good example is the new mandatory entry-level training for commercial truck drivers in Ontario. Mandatory training was implemented in 2017 to ensure that commercial truck drivers are properly trained before they are allowed to take a road test, to improve road safety, and to eliminate inadequate and unregulated training provided by unregistered truck training schools. Previously, drivers could obtain a licence without any formal training. The mandatory training will include at least 103.5 hours of instruction and will cover the entry-level knowledge and skills required to safely operate a large truck.46 Thus, training not only ensures the health, safety, and well-being of employees and the public, it can also save lives. CONOMY AND STANDARD OF V NG i p p E 12 Managing Performance through Training and Development NEL i Li E h E Key to a country’s standard of living, incomes, and overall prosperity are its productivity and productivity growth. Unfortunately, Canada’s economic performance and competitiveness in the global marketplace has been declining. Canada lags behind its major competitors in its productivity growth and innovation. Canada ranks 9th among 16 peer countries in productivity and 14th on the Global Competitiveness Index.47 Among the G7 countries, Canada is the second-least productive country and 27 percent below the productivity of the United States.48 A strong Canadian economy and a high standard of living require an improvement in the productivity, innovation, and performance competitiveness of Canadian organizations.49 There are a number of ways to improve productivity, and one of them is by improving and investing in the knowledge and skills of the workforce.50 Investing in training and development is one of the key ways to improve Canada’s productivity, economy, and standard of living. 01_ch01.indd 12 9/14/18 6:51 AM bikeriderlondon/Shutterstock.com Investing in the development of the workforce through training and development is considered to be a primary means for the economic development of nations.51 Countries with higher education levels have more and better employment opportunities and lower unemployment rates.52 Training investments and a skilled workforce also attract employers and lead to job creation, more job opportunities, and higher paying jobs. The most skilled workers earn 60 percent more than the lowest skilled.53 The federal government spends billions of dollars annually on education and training because it sees a strong link between an educated workforce and a high-wage economy. In 2013 the Canadian government made skills training a The Canada Job Grant is a program to help employers train new centrepiece of the federal budget and introduced the Canada or existing employees to address Canada’s skills mismatch. 54 Job Grant. The Canada Job Grant is a program to help employers train new or existing employees so that employees have the skills needed to fill vacant jobs and to address Canada’s skills mismatch.55 A skills mismatch (or shortage) means that an insufficient number of workers with Skills mismatch An insufficient the needed skills are available to satisfy the number of available jobs. In other words, number of workers there is a mismatch between the skilled labour available and the market demand. The with the skills needed shortage of skilled trades is considered to be one of the barriers to Canada’s economic are available to satisfy 56 prosperity. According to the Conference Board of Canada, there will be a shortage the number of availof a million workers by 2020.57 able jobs Under the Canada Job Grant, employers can receive up to $10,000 to train each worker and workers can receive up to $15,000 to upgrade their skills and help them find a new or better job. Having skilled workers is critical to the growth and competitiveness of organizations as well as economic growth and prosperity. The skills gap and skills mismatch are a major concern of organizations today, and training and development is an important part of the solution to reduce the gap and ensure that employees have the knowledge and skills required by organizations today.58 Another solution is to provide students with work-integrated learning in which they Work-integrated learning acquire work experience as part of their education through internships, apprenticeships, Providing students and cooperative placements. In 2017, the federal government introduced the Student with work experience Work-Integrated Learning Program, which provides employers in the STEM (science, through internships, technology, engineering, mathematics) and business sectors with payroll subsidies for apprenticeships, and hiring students. The goal is to ensure that post-secondary students have the skills required cooperative placements by organizations when they graduate which will help to close the skills gap.59 Of course, for organizations, employees, and society to reap the benefits of training, organizations must invest in training and development. In the next section, we discuss investments in training and development by Canadian organizations. // RA N NG AND EVELO MENT N ANADA In order to benefit from training and development, organizations must invest in training their workforce and provide employees with training opportunities. However, not all workers have access to employer-sponsored training. It has frequently been reported that just over half (56 percent) of the workers in Canada have access to employer-sponsored i p D i C 1 The Training and Development Process 13 C 01_ch01.indd 13 The Training and Development Process hapter i T NEL 9/14/18 6:51 AM training, while some 44 percent do not. What’s more, some workers are less likely to receive training than others. In particular, part-time and temporary workers as well as those who are less educated and older are less likely to receive training, compared to those who are employed in small- and medium-sized organizations.60 Furthermore, Canadian organizations have not been leaders when it comes to investing in training and development. For example, a recent survey found that less than half (47 percent) of Canadian organizations provide training to their employees.61 According to the Conference Board of Canada, Canadian organizations have for many years underinvested in training and development.62 However, the results of the most recent survey indicate a positive and progressive trend in learning and development investments by Canadian organizations. According to the Conference Board of Canada, Canadian organizations have turned a corner when it comes to investments in learning and development.63 Although Canadian organizations have lagged in the amount spent on training per employee, there has been a steady and gradual increase in learning over the past several years. In 2017, the average direct investment in training and development per employee was $889, which is up from $800 in 2015.64 By comparison, organizations in the United States spent on average $1,075 per employee in 2017.65 Canadian organizations spend on average 81 cents for every dollar spent by organizations in the United States on learning and development. Thus, although Canadian organizations continue to lag behind those in the United States when it comes to investments in training and development, the gap has narrowed as Canadian organizations have gained substantial ground.66 In addition, the average number of hours of training received by employees at Canadian organizations increased slightly to 32 hours in 2017 from 31 hours in 2015. As shown in Table 1.1, senior management and executives receive the most hours of training (35) while non-technical (17) and trades (18) employees receive the least. Employees in services (32 hours) and not-for-profit organizations (30 hours) receive the most training, T B 1.1 T INING ND V M N IN C N D • Total average training investment per employee in 2017: $889. • Total average training investment per employee by organization type in 2013: private sector $773; federal/provincial/ Crown $947; municipal/university/hospital/school board $190; not-for-profit sector $381. • Total average training investment per employee by organization size in 2013: fewer than 250 employees $997; 250–499 employees $1,127; 500–1499 employees $666; 1500 or more employees $349. • Total average training investment per employee by level of unionization in 2013: non-union $779; low unionized $560; high unionized $683. • Annual training expenditure per employee by region 2004–2008: uebec $1,158; Alberta $979; Manitoba/Saskatchewan $829; British Columbia $811; Ontario $802; Atlantic provinces $611. • Percentage of payroll spent on training and development in 2017: 1.39. • Percentage of annual revenues spent on training and development in 2017: 1.12. • Average number of training hours received annually per employee in 2017: 32. • Average number of training hours received annually by employee category in 2017: senior management and executive 35; middle management 29; supervisory 23; professional, technical, and scientific 26; trades 18; non-technical 17. Sources: Hughes, P. D., & Campbell, A. (2009). Learning & development outlook 2009: Learning in tough times. Ottawa: The Conference Board of Canada; Lavis, C. (2011). Learning & development outlook 2011: Are organizations ready for learning 2.0? Ottawa: The Conference Board of Canada; Hall, C. (2014). Learning & development outlook—12th edition: Strong learning organizations, strong leadership. Ottawa: The Conference Board of Canada; Cotsman, S., & Hall, C. (2018). Learning cultures lead the way: Learning & development outlook— 14th edition. Ottawa: The Conference Board of Canada. Managing Performance through Training and Development NEL Q a le a a t e elop a ra De a 14 01_ch01.indd 14 9/14/18 6:51 AM while those in wholesale/retail (22 hours) receive the least. By comparison, employees in the United States received an average of 47.61 hours of training per employee in 2017.67 Canada ranked second-last on annual training days per employee in a study that included 12 comparator countries.68 The average investment in training and development as a percentage of payroll in Canada dropped in 2017 to 1.39 percent, down from 1.41 in 2015.69 What type of training should organizations provide their employees? A survey of 800 Canadian employers found that the most strategically relevant skills for a business are thinking/problem solving, customer service, essential skills, and oral/communication. However, less than 50 percent of the employers indicated that they are willing to provide training in these areas. The results shown in Table 1.2 indicated a large gap between the skills that employers value and their willingness to provide training to improve these valued skills.70 Information about training and development in Canada is summarized in Table 1.1. This information will allow you to compare your organization and training experience against that of others. This information also highlights some differences in training across job categories and types of organizations. In the next section, we consider how beliefs that training is an investment or an expense can influence spending on training and development. TA LE 1.2 U F KI S SUS WI INGN SS P VID T Would Provide Training INING Importance to Business 39% Thinking/problem-solving 80% 43% Customer Service 77% 43% Essential Skills 74% 34% Oral/communication 74% 43% Reading, Writing, Math 72% 29% Computer/technology Competency 69% 38% Fluency in English or French 63% 31% Health and Safety 63% 42% Project Management Skills 36% Using Machinery/equipment 0% 20% 40% 58% 49% 60% 80% 100% Source: Anonymous. (2013, April 22). HR by the numbers (employers not providing training). Canadian HR Reporter, 26(8), 4. C 1 The Training and Development Process 15 e ro ra 01_ch01.indd 15 The Training and Development Process hapter to e ll Ver ll S o e Val B NEL 9/14/18 6:51 AM // I RA N NG AN INVE TMENT OR AN X EN E? s p E s i i T s Given the many benefits of training and development, it is surprising that Canadian organizations do not invest more, and it raises the question “Why don’t organizations invest more in training and development?” One reason is that learning and training are not considered a high priority in Canadian organizations. In a survey of Canadian organizations, only 50 percent of respondents agreed or strongly agreed that learning is a top priority in their organization. Furthermore, Canada ranked 20th out of 63 countries on the importance organizations placed on workforce training in 2017. This ranking places Canada behind top-ranking countries such as Japan, Switzerland, and Denmark.71 In another study, Canadian executives were found to be less likely than those in comparator countries to believe that training is a high priority; Canada ranked 30th out of the 55 countries that were surveyed.72 Another reason for the underinvestment in training and development is the perception that training, learning, and development expenditures represent a cost rather than an investment. Organizations that view training and development as an expense believe that training budgets can be cut in difficult times. According to the Conference Board of Canada, many organizations in Canada view training and development as a necessary operating expense or cost that should be minimized.73 Organizations that view training as a cost tend to limit their training investments to only what is required by law or necessary to survive. As a result, training is often one of the first things to go when times are tough and there are cuts to discretionary spending.74 However, organizations that view training as an investment in human capital expect direct benefits and a return on their investment. For these organizations, training is part of the organization’s strategy and a key factor in its competitiveness and success.75 This is not to suggest that there are no Canadian organizations that invest heavily in training and development. In fact, there are large differences in the amount spent on training and development across organizations and industries. The Conference Board of Canada found that one in five organizations invests more than 3 percent of payroll in training.76 Organizations in the financial sector spend hundreds of millions of dollars a year in training and development. CIBC invested more than $61 million globally on corporatewide learning and development in 2017.77 BMO Financial Group invests more than $90 million per year in learning and development programs that include a corporate university, orientation programs, leadership, sales and service programs, and a tuition refund policy or “continuing education assistance plan.”78 TD Bank, which has been ranked by Training Magazine as one of 125 top organizations that excel in employee training and development, invested $81.8 million globally in training and development in 2017. The average number of days of training invested per employee was 4.8 days.79 What can be done to increase training investments in Canadian organizations? What if organizations were required to invest a certain amount of money each year in training and development? That is what the province of Quebec has been doing since 1995, when the government passed the Act to Foster the Development of Manpower Training (Bill 90, which is often referred to by employers as the “1 percent” or “training” law), making it the only payroll training tax in North America. The law requires companies with payrolls of $1 million or more to invest a minimum of 1 percent of their payroll on government-sanctioned training, or pay that amount into a provincial fund for workforce training. Companies with payrolls of less than $1 million are exempt. The funds acquired from companies that do not invest the 1 percent of payroll on training are placed in a government fund that supports training initiatives in the province.80 16 01_ch01.indd 16 Managing Performance through Training and Development NEL 9/14/18 6:51 AM Norm Betts/Bloomberg/Getty Images Organizations in the financial sector invest hundreds of millions of dollars a year in training and development. A report analyzed the landmark law, concluding that it has had a significant effect on the way Quebec firms organize and deliver training, and has resulted in substantial growth in adult learning and training over the last decade. In fact, the participation rate in workplace training in Quebec increased from 21 percent to 33 percent between 1997 and 2002, making it the fastest growth rate in Canada and closing the gap between Quebec and other provinces.81 According to the Conference Board of Canada, organizations in Quebec spend on average more per employee on training and development than those in other provinces, providing additional evidence that the Quebec law has had a positive effect on training investments.82 Some organizations try to ensure that they benefit from their training programs by having employees sign a training bond. A training bond is 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 upon completion of a training program. If the employee fails to remain for the agreed-upon period of time, then he/she must reimburse the organization for the cost of the training.83 So far in this chapter we have focused on the role, importance, and impact of training and development. However, training and development takes place within a larger context that can influence the extent to which organizations provide training and the type of training they provide. Let’s now take a closer look at the context of training and development. raining 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 // E ONTEXT OF RA N NG AND EVELO MENT 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. As shown in Figure 1.2, training and development is just one part of a system of human resource practices that is influenced by internal and external factors. The human resources system is influenced by environmental and organizational factors. Environmental factors such as legislation, the economic climate, competition, demographics, and social values have an impact on organizations. For example, if a C 1 The Training and Development Process 17 i i T C 01_ch01.indd 17 The Training and Development Process hapter p D Th T NEL 9/14/18 6:51 AM

Managing Performance through Training and Development Textbook

Related documents

Products

Support

Managing Performance through Training and Development Textbook

Related documents

Add this document to collection(s)

Add this document to saved

Suggest us how to improve StudyLib