Learning, Training, and Development of Employees: Ensuring Long-Term Competitiveness and Excellence

1. CHAPTER 13 Training & Development:Issues and HRIS Applications

2. LEARNING, TRAINING, AND DEVELOPMENT OF EMPLOYEES • The Learning, Training, And Development (LT&D) Of Employees Is Now Center Stage In Today’s Organizations To Ensure Long-term Competitiveness, Excellence, Quality, Flexibility, And Adaptability. • Changing Work Practices And New Services And Products Necessitate New Knowledge, Competences, And Skills. • Today’s Organizations Ought To Learn Faster And More Effectively Than Their Rivals In Order To Remain Competitive. • Enable Employees To Cope With Daily Workloads. • Alleviate Possible Future Skill Shortages • To Foster Employee Motivation And Satisfaction (Pfeffer, 1996, 1998). • Employees Place Much Greater Emphasis On Career Prospects And Career Development In Their Choice Of Employer.

3. TRAINING AND DEVELOPMENT CONTRASTED Training • Short-Term Objectives • Knowledge, Skills And Abilities (KSA) • Improving Current Job Performance Development • Longer-Term Objectives • Competencies • Preparing For Future Job Performance

4. TRAINING AND LEARNING IN ORGANIZATIONS • Training Refers To A Planned Effort By A Company To Facilitate The Learning Of Job Related Knowledge, Skills, Or Behavior By Employees. • High-leverage Training Is Linked To Strategic Business Goals And Objectives, Is Supported By Top-management, Relies On An Instructional Design Model To Ensure The Quality Of Training And To Contain Costs, And Is Compared Or Benchmarked To Programs In Other Organizations. • A Learning Organization Is One Whose Employees Are Continuously Attempting To Learn New Things And Apply What They Learn To Improve Product Or Service Quality.

5. LEARNING ORGANIZATIONS • Learning Recognized As A Source Of Competitive Advantage • Use Knowledge Management: • Make Sure Knowledge From Employees, Teams, And Units Is Captured, Remembered, Stored And Shared • Technologies Provide Software ToShare Knowledge Electronically • Chief Learning/Knowledge OfficerCoordinates Activities

6. ESSENTIAL FEATURES OF LEARNING ORGANIZATIONS • Continuous Learning • Knowledge Generation And Sharing • Critical Systematic Thinking • Learning Culture • Encouragement Of Flexibility And Experimentation • Valuing Of Employees

7. TRAINING AND DEVELOPMENT: STRATEGIC IMPLICATIONS • Learning Is Defined As The Process Of Assimilating New Knowledge And Skills In Consequence Of Experience Or Practice Which Will Bring About Relatively Permanent Changes In Behavior. • Outcomes Of Learning Include Skills, Competences, Know-how Or Tacit Knowledge, And Higher Level Cognitive And Other Skills (Collin, 2007). • Skills Are Directly Related To Performance And The Ability To Carry Out A Task. • Competences Comprise The KSA And Underlying Characteristics Of A Person That Allow The Jobholder To Perform A Task Effectively. • The Knowledge Of EmployeesIs A Tacit Commodity, An Intangible Asset. It Is Associated With An Understanding Of And A Constructive Application Of Information (Grant, 1996).

8. Knowledge Management (KM) • Acquisition • Documentation • Transfer • Creation • And Application of Knowledge

9. ORGANIZATIONAL LEARNING • Argyris and Schon (1978) suggested a three-level model of organizational learning • Single-loop • Double-loop • Triple-loop

10. ORGANIZATIONAL LEARNING (CON’T) • Peter Senge’s Book, The Fifth Discipline, Put Forward Five Interrelated Disciplines That Organizations Should Cultivate Among Its Employees To Engender Learning And Success (Senge, 1990). • Personal Mastery: Individual Growth And Learning • Mental Models: Deep-rooted Assumptions That Affect The Way In Which Employees Perceive People, Situations And Organizations • Shared Visions: A Shared View Of The Organization’s Future • Team Learning: A Shift From Individual Learning To Collective Learning • Systems Thinking: Or The Fifth Discipline, Which Connects The Previous Disciplines (Burnes, 2004)

11. SYSTEMS MODEL OF TRAINING Figure 13.1 • Phase 4: • Evaluation • Reactions • Learning • Behavior • Results • Phase 3: • Implementation • On-the-job methods • Off-the-job methods • Phase 2: • Design • Instructional objectives • Trainee readiness • Learning principles • Phase 1: • Needs Assessment • Organization Analysis • Task analysis • Person Analysis • Demographic Analysis Note: US organizations spend over $60 billion annually on training (1.7 billion training hours). Much of that investment is wasted because it is not done in a systematic way.

12. IDENTIFYING T&D NEEDS Training Needs Analysis (TNA): Establishing What Is Needed, By Whom, When And Where, So That Training Objectives Can Be Determined • Organizational Level • Job Level • Person Level

13. DEVELOPING T&D INITIATIVES The Development Of T&D Initiatives, Objectives And Methods, Which Should Be Capable Of Meeting The Three Levels Of Needs Identified During The TNA. Successful Learning Events Must Achieve A ‘Best Fit’ Between: • Content Of What Is To Be Learnt • Media Through Which Content Is Delivered And • Method Used To Facilitate Learning

14. External Consistency Internal Consistency Content Media Method Successful Learning Event BEST-FIT LEARNING EVENT MODELFigure 13.2.

15. TRAINING METHODS Table 13.1

16. E-LEARNING E-learning Is An Umbrella Term And Broadly Refers To Any Learning Facilitated Using Electronic Means. E-learning Can Capitalize On A Variety Of Delivery Media Depending On The Approach Taken: • Printed Media (Including Textbooks, But Also Online Text And Online Magazines And Journals) • Audio (E.G. Traditional Audio Tapes, Cds, Mp3s, Wav, And Other Electronic File Formats) • Video (E.G. Traditional Video Tape, CD-ROM, Interactive Video, Dvds, Video Streaming, Satellite Or Cable Transmissions) • Other Combined Media Including Hypermedia, Collaborative Software Or Social Networking Technology (E.G. Web Sites, Discussion Forums, E-mail, Blogs, Wikis, MySpace, Youtube, Second Life).

17. E-LEARNING METHODSTable 13.3

18. E-LEARNING • Digital Collaboration • The Online Collaboration Between Learners Tends To Increase Learning And Learning Transfer • Groupware (Electronic Meeting Software) • Lotus Notes Is The Most Common Groupware • Synchronous/Asynchronous Communication • Blended Learning (Hybrid Blend Of E-learning And Face-to-face)

19. E-LEARNING TYPOLOGY Table 13.4

20. RAPID E-LEARNING (REL) SOLUTIONS Key Characteristics: • It has a short development time • Subject Matter Experts (SMEs) act as key source of content development • It can be created using standard presentation software • It allows for easy assessment and tracking of training • Auxiliary multimedia tools (including flash applications) can be used to enhance training experience • Training units can be undertaken in minutes rather than hours • It can be synchronous as well as asynchronous

21. REL SHOULD BE USED IN SITUATIONS BELOW • Short Shelf Life Of Training • Critical Information Needs And Standard Information Broadcasts • Training That Is Purely Informational In Nature • Training That Does Not Require Mastery • Prerequisite And Introductory Training • Training Updates

22. EVALUATION OF E-LEARNING Table 13.5

23. RESEARCH- Based GUIDELINES FOR E-LEARNING • Only Provide E-learning When You Are Sure It Meets The Organization’s Specific Learning And Development Needs. • Train Learners On Computer Basics Before Offering Computer-based Training. • Take Into Consideration Human Cognitive Processes When Designing E-learning Programs. • Enhance The Learning Experience By Including Graphics, Texts And Learning Games In The Presentation Of Learning Topics. • Keep Learners ‘Engaged’ By Offering Blended Learning And Allowing Interaction Amongst Trainees And Between Trainees And Facilitators. • Offer Trainees Control Over Certain Aspects Of Instruction And Guide Them Through The Learning Process By Using Tools, Such As Cognitive Maps.

24. IMPLEMENTING T&D • Closing Linked With Developing T&D Initiatives (Stage 2) • Implementation Plan Should Include: • The Resources Required • How Training Should Be Carried Out • Who Should Facilitate Training • The Period Within Which Training Should Occur

25. TRANSFER OF TRAINING • Positive And Long-lasting Changes In Employee Behavior And, Ultimately, Increased Shareholder Value Can Only Be Attained If Training (Or Learning) Transfer Occurs. • Training Transfer Is The Continuous Application Of KSA Acquired During The Training Exercise. • Various Classifications Of Transfer Of Training Exist Depending On The Context. • Near Vs. Far (How Close Is The Training Task To The Actual Job Task?) • Specific Vs. General (Transfer Of Skills Vs. Transfer Of Principles) • Positive Vs. Negative (Linked To The Perception Of The Training Experience) • Lateral Vs. Vertical (Hayashi Et Al., 2005)

26. TRANSFER OF TRAINING Training Transfer Depends On The Following Variables: • Trainee Characteristics (The Trainee’s Predisposition To Training) • Training Design (The Organization Of The Learning Environment) • Work Environment (Immediate Factors At Work, Which Affect Transfer) • Learning And Retention • Generalization And Maintenance (Ensure Trainee Is Given The Opportunity To Continuously Use The Acquired KSA)

27. EVALUATING T&D In order to assess whether a particular training initiative, method or solution has met the training needs and objectives of the firm and whether transfer of learning has taken place, organizations must evaluate their t&d efforts.

28. EVALUATION PROCESSFigure 13.3. SOURCE: Developed from Noe (2002).

29. PURPOSES OF EVALUATION Table 13.5

30. COST-BENEFIT APPROACHESTable 13.7 SOURCE: Sadler-Smith (2006).

31. TRAINING COSTS (CONT.) • Development Costs • Fee For Program Purchase • Instructor Training • Registration Fee • Travel And Lodge • Salary • Overhead Costs • General Organizational Support • Top Management Time • Compensation For Trainees • Trainees Salaries And Benefits Based On Time Away From Job

32. TRAINING METRICS AND COST-BENEFIT ANALYSIS • The costs involved in training can be established relatively easily. These overheads can be substantial and involve direct costs and indirect costs • The actual benefits to the firm may be much more difficult to ascertain, as many of the benefits take a long time to materialize or can often be of an intangible nature

33. TRAINING COSTS • Direct Costs • Instructor • Travel Expenses • Materials • Classroom Space And Audiovisual Equipment • Refreshments • Indirect Costs • Training Management • Clerical And Administrative Salaries • Pre And Post-training Materials

34. TRAINING BENEFITS • Trainee Productivity • Productivity increase without training vs. with training • Turnover Costs & Future Increases • Decrease In Turnover

35. TRAINING METRICS AND COST-BENEFIT ANALYSIS (2) Three Critical Factors In Human Resource Development Evaluation, Which Complicate The Assessment Of Training Outcomes (Russ-eft And Preskill, 2005): • Evaluation Occurs Within A Complex, Dynamic, And Variable Environment • Evaluation Is Essentially A Political Activity • Evaluation Ought To Be Purposeful, Planned, And Systematic

36. TRAINING METRICS AND COST-BENEFIT ANALYSIS (3) Post training data should be analyzed and converted into monetary values to establish roi Phillips’s ROI methodology produces six types of data: • Reaction, Satisfaction And Planned Action • Learning And Application • Implementation • Business Impact (See Table 13.7) • ROI • Intangibles

37. T & D DATA ELEMENTS FOR HRIS Training Costs: • Cost Of Trainers & Future Increases • Equipment, Depreciation, Maintenance • Compensation Per Trainee • Cost Per Facility • Preparation Time • Training Materials • Number Of Trainees

38. HRIS APPLICATIONS IN TRAINING Useful HRIS information should possess three key characteristics: • It must be presented in a user-friendly manner. • It must be meaningful and appropriate (Keebler & Rhodes, 2002). • It must be used effectively in the decision making process to support an organization’s overall business strategy (Kovach & Cathcart, 1999)

39. COST BENEFIT ANALYSIS FORMULA • The following formula can be used to economic value of a training program: T U= [∑ (1/1+i)^t)N SDy dt (1+V) (1-TAX)] – N C (1-TAX) t=1

40. HRIS/LEARNING APPLICATIONS: LMS • The capabilities of today’s HRIS T&D applications, also called learning management software (LMS), range from training administration, to training management to talent management. • Training management systems can facilitate the entire T&D process from TNA to training evaluation

41. LEARNING MANAGEMENT SYSTEM CLASSIFICATIONTable 13.9 SOURCE: Adapted from e-Learning Consulting (2007).

42. HRIS/LEARNING APPLICATIONS: LMS The Degree To Which LMS Can Assist Strategic Decision Making May Be Assessed Using Beckers And Bsat’s (2002) Decision Support System (DSS) Classification. • Management Information Systems (MIS) • Decisions Support Systems (DSS) • Group Decision Support Systems (GDSS) • Expert Systems (ES) • Artificial Intelligence (AI)

43. HRIS T&D APPLICATIONS: IMPLEMENTATION ISSUES Many HRIS T&D Projects Fail To Meet The Expectations Of Key Decision-makers. The Reasons For This Include: • Some Firms Introduce New TMS Only Because Competitors Have Done Likewise, Without Having The Necessary Expertise To Operate The System. • False Expectations Of ROI Or Apply Training Metrics That Merely Focus On Cost Savings And Fail To Take Note Of Intangible Gains Derived From T&D (See Section On Training Metrics). • HRIS T&D Application Strategy Is Not Aligned With Training Needs And The Overall T&D, HR And Business Strategies. • Few Organizations Involve Employees During The Implementation Stage Of The HRIS, Which Can Lead To Underutilization And Dissatisfaction With The System (Burbach & Dundon, 2005).

44. SUGGESTIONS FOR SUCCESS A Number Of Authors Have Suggested Success Factors For The Introduction Of HRIS T&D Applications (Gascó Et Al., 2004; Noe, 2002; Sadler-smith, 2006) And For Increasing E-learning Completion Rates (Frankola, 2001): • Align E-learning Strategy With T&D Strategy, HR Strategy And Overall Business Strategy • Create A Corporate Learning Culture That Fosters E-learning And The Use Of HRIS T&D Applications • Assess HRIS T&D Projects By Their Suitability To Meet The T&D Strategy Of The Organization Rather Than The Technical Sophistication And Elegant Features Of The System • Carefully Plan HRIS T&D Projects To Guarantee Compatibility With Legacy Systems And Sufficient Budget Allocation And Expertise To Use The System • Involve Line Managers And Employees In HRIS T&D Projects To Ensure Greater Buy-in • Match HRIS T&D Applications And E-learning Initiatives With Their Ability To Meet Training Needs To Encourage Learning Transfer

45. SUGGESTIONS FOR SUCCESS (CONT.) • Establish A Suitable Evaluation Strategy To Assess The Extent To Which Training Technology Meets Training Needs And Evaluate Regularly • Identify Suitable T&D Metrics That Take Account Of All Direct And Indirect Training Outcomes • Promote The Use Of HRIS T&D Applications And E-learning • Make Managers Accountable For Uptake Of E-learning And HRIS T&D Utilization • Reward Employees For Use Of E-learning • Ensure T&D Systems And E-learning Is User-friendly And Provides Quality Information • Develop A Data Security Policy For The T&D System And Applications • Do Not Focus On Financial Gains From HRIS T&D Projects Alone • Train Managers And Employees In The Use Of T&D Technologies