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This chapter introduces the concept of training and its role in helping organizations gain a competitive advantage. It covers topics such as employee readiness, creating a learning environment, needs assessment, evaluation planning, transfer of training, and program monitoring. The chapter also discusses the forces influencing the workplace, including globalization, quality emphasis, changing demographics, and new technology.
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Chapter 1 Introduction: Training for Competitive Advantage
Introduction • Training is intended to improve organization. • Training practices are intended to help organizations gain a competitive advantage in their markets. • Competitive advantage is ability to maintain and gain market share in industry
What is training? • Training refers to a planned effort by a company to facilitate employees’ learning of job-related competencies. • The goal of training is for employees to • master the knowledge, skill, and abilities and other qualifications emphasized in training programs, and • apply them to their day-to-day activities
What is learning? • Learning refers to a relatively permanent change in cognition resulting from experience and directly influencing behavior. • Knowledge – information • Skills – general capacities to perform tasks; developed through experience • Abilities – general capacities to perform tasks developed over time as the result of heredity and experience • Other qualifications
What is a learning organization? • Learning organization consists of employees who are always learning and improving their KSAOs • Continuous learning is a condition in which employees constantly expand their capabilities • Information maps • Technology
What is development? • Employee development occurs when employees learn KSAOs not necessarily applicable to their current job but important in personal or career growth. • Organizational development is a set of processes designed to improve the ability of an organization to adopt its internal characteristics to the demands of its environment while meeting the needs of its members through planned interventions
Training Design Process Ensuring Employees’ Readiness for Training Creating a Learning Environment Conducting Needs Assessment Developing an Evaluation Plan Ensuring Transfer of Training Monitor and Evaluate the Program Select Training Method
Assumptions of Training Design Approaches • Training design is effective only if it helps employees reach instructional or training goals and objectives. • Measurable learning objectives should be identified before training. • Evaluation plays an important part in planning and choosing a training method, monitoring the training program, and suggesting changes to the training design process.
Forces Influencing the Workplaceand Training • Globalization • Need for leadership • Increased value placed on knowledge • Attracting and winning talent • Quality emphasis • Changing demographics and diversity of the work force • New technology • High-performance model of work systems
The Global Challenge • Cross-cultural training prepares employees and their families for overseas assignments and for returns • Foreign workers
The Quality Challenge • Quality is determined by the user and is anything that the user is willing to give up something of value in order to obtain • Malcolm Baldrige Quality Award • ISO 9000 • Six Sigma • Total Quality Management
Core Values of Total Quality Management • Methods and processes are designed to meet the needs of internal and external customers. • Every employee in the company receives training in quality. • Quality is designed into a product or service so that errors are prevented from occurring, rather than being detected and corrected.
Core Values of TQM (continued) • The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs. • Managers measure progress with feedback based on data.
The Social Challenge • Communicating effectively with employees from a wide variety of backgrounds. • Coaching and developing employees of different ages, educational backgrounds, ethnicities, physical abilities, and races. • Providing performance feedback that is free of values and stereotypes based on gender, ethnicity, or physical handicap. • Creating a work environment that allows employees of all backgrounds to be innovative.
How Managing Cultural Diversity Can Provide Competitive Advantage
How Managing Cultural Diversity Can Provide Competitive Advantage (continued)
Use of new technology and work design needs to be supported by specific HRM practices: • Employees choose or select new employees or team members. • Employees receive formal performance feedback and are involved in the performance improvement process. • Ongoing training is emphasized and rewarded. • Rewards and compensation are linked to company performance.
Use of new technology and work design needs to be supported by specific HRM practices: (continued) • Equipment and work processes encourage maximum flexibility and interaction between employees. • Employees participate in planning changes in equipment, layout, and work methods. • Employees understand how their jobs contribute to the finished product or service.
Training Investment Leaders • U.S. employers spend approximately $59 billion on formal training per year • Approximately 1 to 2 percent of their payroll • Training Investment Leaders invest 3 to 5 percent of payroll in training • They train almost all eligible employees • Employees spend twice as much time training as those in Benchmark firms • They make a larger investment in learning technologies.
