Managing Performance through Training and Development Third Edition PowerPoint Slides Dr. Lori Buchart, CD, CHRP Mount Royal University © 2013 by Nelson Education Ltd. 1 CHAPTER ONE The Training and Development Process © 2013 by Nelson Education Ltd. 2 LEARNING OUTCOMES Understand the meaning of performance management (PM), training and development (T&D), and human resources development (HRD) Describe the PM process and the role of T&D Describe the societal, organizational, and employee benefits of T&D Discuss T&D in Canada Explain the role of the environmental and organizational context of T&D and the human resources system Discuss the meaning of strategic HR, T&D, and high-performance work systems Discuss the instructional systems design model of T&D © 2013 by Nelson Education Ltd. 3 INTRODUCTION Value of T&D cannot be underestimated – critical function Number of incidents attributable to lack of training, which cost lives and money Success and competitiveness are highly dependent upon sound T&D – critical to organizational performance T&D are key factors in creativity, innovation, and transfer of knowledge, and are part of the defining factors of best companies to work for in Canada It is a sound investment with an ROI – not a cost! © 2013 by Nelson Education Ltd. 4 PERFORMANCE MANAGEMENT Performance management entails: Not a single event – it is a continuous loop of: • (Re-)Establishing performance goals and expectations • Designing interventions and programs to develop employee KSA and overall employee and company performance • Monitoring success of interventions and programs Employee development plans are critical in this process © 2013 by Nelson Education Ltd. 5 PM PROCESS © 2013 by Nelson Education Ltd. 6 TRAINING AND DEVELOPMENT Training and Development • Formal and planned efforts that allow one to acquire KSAs: –Training: To improve current job performance (short-term focus) –Development: To perform future job responsibilities (longer-term focus) – i.e., career goals and organizational objectives © 2013 by Nelson Education Ltd. 7 HUMAN RESOURCES DEVELOPMENT HRD: • 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 © 2013 by Nelson Education Ltd. 8 T&D BENEFITS Organizational Increases effectiveness and productivity Maintains competitive advantage Improves recruitment and retention efforts Provides an integrated structure/process to achieve organization’s business objectives © 2013 by Nelson Education Ltd. 9 T&D BENEFITS Employees Intrinsic and Extrinsic • Confidence • Self-efficacy • Higher earnings • Promotion/advancement • Positive attitude/behaviour • Seek out opportunities © 2013 by Nelson Education Ltd. 10 T&D BENEFITS Society Society • Skilled workforce • Increased standard of living • Increased global presence Note: Canada lags in the category of innovation and competitiveness © 2013 by Nelson Education Ltd. 11 CANADA STATISTICS Can we do better in Canada? • Number of employees in Canadian organizations that receive training: –11 million workers receive some sort of workplace training as follows: – More than 2/3 (69%) full-time workers – 50% part-time employees – 31% seasonal/contract employees © 2013 by Nelson Education Ltd. 12 INVESTMENT OR EXPENSE? 2006 – Canada ranked 21st in T&D spending 2002 – Canada ranked 12th in T&D spending Underinvestment may lead to a gap in essential skills to remain competitive in today’s global marketplace Must increase spending – not look at it as an expense, but rather an investment © 2013 by Nelson Education Ltd. 13 QUEBEC TRAINING LAW Passed in 1995 – “1% or training law” • Only payroll training tax in North America Changed way firms structure, organize, and deliver training: • Actively planning and implementing training – Participation increased (1997–2002) from: – 21% to 33% in Quebec – 29% to 35% in Canada • Employers, governments, and unions working together to find ways to promote © 2013 by Nelson Education Ltd. 14 T&D CONTEXT © 2013 by Nelson Education Ltd. 15 T&D CONTEXT A. Environmental Context 1. 2. 3. 4. 5. Global competition Technology Labour market Change Social climate © 2013 by Nelson Education Ltd. 16 T&D CONTEXT B. Organizational Context 1. Strategy 2. Structure 3. Culture © 2013 by Nelson Education Ltd. 17 T&D CONTEXT C. Human Resources Management System High-Performance Work System (HPWS) Integration with all HR practices and policies Integration with business strategy … Is Essential Influences T&D strategy, policy, and practice © 2013 by Nelson Education Ltd. 18 STRATEGIC T&D Business strategy influences HRM strategy An integrated/interrelated approach © 2013 by Nelson Education Ltd. 19 INSTRUCTIONAL SYSTEMS DESIGN MODEL (ISD) © 2013 by Nelson Education Ltd. 20 INSTRUCTIONAL SYSTEMS DESIGN MODEL (ISD) Rational and scientific model of T&D process consists of three major overlapping steps: Starts with performance gap or itch (problem) – Training needs analysis – Training design and delivery – Training evaluation The ISD model guides strategic T&D process (and the rest of this course) © 2013 by Nelson Education Ltd. 21 SUMMARY Investigated strategic T&D processes and drivers of these processes T&D play critical roles in an organization’s competitive advantage, effectiveness, and productivity Done right, there can be a significant ROI – not simply an expense Discussed state of training in Canada with added emphasis on the Quebec Training Law and its effectiveness since its inception © 2013 by Nelson Education Ltd. 22 SUMMARY The value of training and development is increased when linked to SHRM, aligned with other HR practices (and a HPWS), and tied to an organization’s business strategy Introduced instructional systems design (ISD) model • Key concepts to be addressed in subsequent chapters, such as needs analysis, training design and delivery, and the evaluation of training programs © 2013 by Nelson Education Ltd. 23