Managing Performance through Training and Development, 5e PowerPoint Presentation prepared by Tracey Starrett, M. Ed, CHRP School of Human Resources Management York University © 2010 by Nelson Education Ltd. 1 Chapter One The Training and Development Process © 2010 by Nelson Education Ltd. 2 Learning Outcomes Understand the meaning of performance management, training, development, and human resources development Describe the organization, employee, and societal benefits of T&D Discuss the current state of T&D in Canada Understand the environmental and organizational context of T&D © 2010 by Nelson Education Ltd. 3 Training and Development Situations on a daily basis require us or someone else to demonstrate effective performance Significance of these situations varies from minor to extremely critical Effective performance often comes from some form of education, learning, training, or development Look at the link between effective performance and individual and organizational effectiveness © 2010 by Nelson Education Ltd. 4 The Terms Performance management is: The process of establishing performance expectations with employees Designing interventions and programs to improve performance Monitoring success of interventions and programs © 2010 by Nelson Education Ltd. 5 The Terms Performance Management Monitor Success Establish Expectations Design Interventions © 2010 by Nelson Education Ltd. 6 The Terms One set of interventions includes: Training: acquisition of KSAs to improve performance in one’s current job Development: acquisition of KSAs required to perform future job responsibilities and in the longterm achievement of individual career goals and organizational objectives © 2010 by Nelson Education Ltd. 7 The Terms Human Resources Development: Systematic and planned activities that are designed by an organization to provide employees with an opportunity to learn necessary skills to meet current and future job demands © 2010 by Nelson Education Ltd. 8 The Benefits of T&D A. Organizational benefits: Organizational strategy Increase organizational effectiveness Employee recruitment and retention © 2010 by Nelson Education Ltd. 9 The Benefits of T&D B. Employee Benefits Intrinsic • Greater knowledge & skills, higher selfefficacy, feel more useful, have more positive attitudes towards their job and organization Extrinsic • Higher earnings, more marketable, greater job security, and enhanced promotion prospects © 2010 by Nelson Education Ltd. 10 The Benefits of T&D C. Societal Benefits Educated population: helps to create educated and skilled workforce Standard of living: dependant on productivity and productivity growth © 2010 by Nelson Education Ltd. 11 The Benefits of T&D Employee Benefits Organization Benefits Societal Benefits © 2010 by Nelson Education Ltd. 12 Investment or Expense? Canada ranks 20th out of 60 countries in ranking of employee training as a priority Viewed as cost or expense results in limited/required training Viewed as investment is part of organization’s strategy One in five companies invests more than 3% of payroll in training Scotiabank = $47m, BMO = $1800/employee © 2010 by Nelson Education Ltd. 13 Context of Training & Development © 2010 by Nelson Education Ltd. 14 Context of Training & Development A. Environmental context 1. 2. 3. 4. 5. 6. 7. 8. Laws Global competition Technology Demographics Labour market Economy Change Social climate © 2010 by Nelson Education Ltd. 15 Context of Training & Development B. Organizational context 1. 2. 3. 4. 5. 6. Goals Values Strategy Structure Culture Leadership © 2010 by Nelson Education Ltd. 16 Context of Training & Development C. Human Resources Management System All functional areas of HR work together to create an HR system Driven by organizational strategy and SHRM Is what constitutes a High Performance Work System (HPWS) Lead to a Strategic Model of Training and Development © 2010 by Nelson Education Ltd. 17 Instructional Systems Design Model Rational and scientific model of T&D process consisting of 3 major steps: 1. Training needs analysis 2. Training design and delivery 3. Training evaluation • Starts with performance gap or itch (problem) • The ISD model is the basis for rest of the course © 2010 by Nelson Education Ltd. 18 Summary Introduction to the training and development processes T &D plays important role in effectiveness and competitiveness of organizations Is an investment in human capital, with dividends for the individual, the organization, and society at large The state of training in Canada is discussed with added emphasis on the Quebec Training Law and its effectiveness since its inception © 2010 by Nelson Education Ltd. 19