MGT 430 – Spring 2016Class 10 – Chapter 8

TRAINING

TRAINING AND DEVELOPMENT

• Why do we train

• What do we train

• How do we train

• What’s the payoff

Why Do We Train And Develop Our People?

• Meet regulatory requirements of government and industry• Bridge the gap between minimum and maximum job performance• Promote safety & security & sensitivity & peace & love & harmony & …• Certification - Licensing• Develop additional value-adding skills relative to your organization• Develop your own skills for career enhancement & advancement• Improve corporate performance• Generate enhanced competitive advantages

Customers: as a preferred vendor Employees: as a preferred employer

• Pad your resume

LINEAR SILOS OF EXPERTISE

HR FINANCE MKTG ACCT MIS

LOG. R&D PUB. REL. INVEST. REL. LEGAL

CROSS-FUNCTIONAL --TALKING TO ONE ANOTHER

HR FINANCE MKTG ACCT MIS

LOG. R&D PUB. REL. INVEST. REL. LEGAL

THUSWE MUST ASK THE FOLLOWING QUESTION:

How does the Human Resources function help advance the objectives of:

• The company• The shareholders• Organizational departments, e.g. Finance – Marketing – MIS – Accounting –

Production – etc.• The Vision/Mission/Strategy of the company

What should we be training and/or developing

Human Resources needs to promote and coordinate training in:

• Technical skills• Leadership skills• Business skills• Technology skills• Critical thinking skills• Theory vs. practical (real-world)

For example: Selected Professional Development Programs

Regulatory Requirements

a. Federal & State requirementsb. Industry requirementsc. Certification requirements (e.g. Apprentice – Journeyman – Master)d. Safety requirementse. Continuing education requirements

Selected Professional Development Programs

Supervisory / managerial development

a. Communicationsb. Motivationc. Leadershipd. Disciplinee. Common or popular supervision theoriesf. Teamworkg. Coaching/mentoring

What should we be training and/or developing

Selected Professional Development Programs Practical Exercise

Imagine that you have been hired as a 1st year accounting, marketing, MIS, or finance specialist at XYZ corporation – a $500 million food services company. Please identify the next five professional development steps you think you should take:

Accounting Marketing MIS Finance HR1. B.A.2. MBA3. CPA4. EA5. Other

Types of Typical Training ProgramsEmployee Orientation – Group & Individual

• Policies and procedures – holidays, hours of work, security• Employee paperwork – payroll, benefits, personnel files, I-9, etc.• Overview of company history and culture• Leadership and chains of command• How do we conduct business• What are our competitive advantages• Who are our customers• Analysis of the SWOT of the company• Others

ONBOARDING

• Fancier word for ‘orientation’

• Refers to the hiring and integration process used to socialize new employees to the company

• Typically used for mid to upper level employees

• More important now as companies recognize the critical role of human capital in organizational success

NEW EMPLOYEE INFORMATION EXERCISE

Assume that today is your first day on the job at your new employer and you are participating in their orientation program. Please identify 5 areas of information that you would like to take away from this session.

1.2.3.4.5.

Some Key Training Definitions

• Training – The systematic process of providing employees with competencies needed to perform specific functions and that sustain and add value to the work.

• Development – preparing employees to take on additional responsibilities

• High-potential employees – employees with greatest likelihood of being successful and advancing more quickly

SCENARIO

• As the Transportation Department Manager for a local freight company, you have four warehousemen working for you. Your job is to insure that 20-25 large trucks each day are properly scheduled for unloading raw material used in your company and re-loading the finished product for distribution to your customer’s warehouses. • The failure of just one truck to reach its intended customer on time represents $25,000 in

lost revenue. • Pete is your best warehouseman. His three colleagues are new and require additional

time and supervision in order to come up to Pete’s level of competence.• The company requires that Pete attend a two-day workshop in Boston on new regulations

governing the trucking industry.

Consider why your audience is attending the training

Why am I attending your training program?

1. I need this course to graduate2. I want the information/technique that is offered3. The company says I have to take it4. It is required education in my field5. I can pad my resume with it6. It will benefit me by …

CONCERNS FROM THE MANAGER’S PERSPECTIVE

• What’s my ROI regarding this training• Will this make my life easier/better/more productive/more profitable …• Is this in my training budget• Who is going to do the work while my employees are away at this training program?• What is the level of importance on training from the C-Suite, and is it real or just lip

service• My non-exempt employees must be compensated for all mandatory training – even

online courses done at home. Where is this money coming from

Part 1: Needs Assessment - Organization Analysis

In terms of required/desired KSAs1. Where are we now2. Where do we wish to be one year (or more) from now3. What is the best way to get there

In other words

• How do the organization’s performance metrics look? (quantitative & qualitative)

• Do the metrics suggest there are performance gaps that could be reduced with training?

Analyzing The Needs Of The Organization

What is the current health of the organization, e.g.• Financial• Product/service design and delivery• Marketing strength• Use of technology• Competition• Quality employees• Employee performance• Critical thinking skills• Growth opportunities

Practical Exercise

Your production department is generating a scrap rate of 8%. An acceptable scrap rate for your company is 2%. The industry average is 3%.

List some possible reasons for the scrap rate to be this high1.2.3.4.5.

Possible reasons for an unacceptable scrap rate

1. Poor engineering2. Not enough employees3. Raw material defects4. Employees not familiar with machinery or material5. Poor leadership6. Employees not trained properly on the machinery or the process7. No incentive for better scrap rates

Practical Exercise – Solutions via Training

1. Employees not properly trained on machinery Technical training

2. Poor leadership/motivation skills of managers Leadership training

3. Failure to link their work to the success of the department and the company Supervisory training

4. Understanding financial cost of excessive scrap rate Financial training

Part 1: Needs Assessment - Task AnalysisIdentifies gaps between

• KSAs needed to perform the work AND Current KSAs of employees

• Necessary KSAs

Gap -----

• Current KSAs

Why the skills gap

• Improper job design Engineering

• Improper job hiring Recruiting & Selection

• Job has been re-structured Organizational re-design

• Unavailable in the job market (e.g. STEM) Labor supply

Key issues

• Why am I learning this stuff – can I use my newly learned KSAs in my job

• What’s in it for me (W.I.I.F.M.)

• Is it cost effective from my manager’s perspective (what’s his/her payoff)

• I’m the Human Resources Manager – Why should I have to learn accounting and business finance?????

HR Thought Starter

As the manager of your company’s HR department, you have been allotted 10 hours per month in your budget for training. Which subjects should you spend these 10 hours on, and why?

2 hours - Developing your interviewing skills4 hours – Mandatory and legal compliance programs2 hours – Diversity training2 hours - Developing your H.R.I.S. skills2 hours – Working with handicapped employees2 hours – Supervisory/managerial skills development2 hours – Safety training2 hours – Dealing with hostile environments2 hours – Fair Labor Standards Act – Dealing with union and union grievances

Total hours = 20

TRAINING METHODS

Which method works best for you?

• On the job training (OJT) Operations & Procedures manuals• Classroom learning E-Learning• Audio-visual Simulations• Gaming Blended learning (multiple modes)• College/University programs Coaching & Mentoring• Seminars (web & in-person) Workshops

Developing a Continuous Learning Mindset

“I never let my schooling interfere with my education”. (Mark Twain)

• A learning organization is one where all members of an organization are continually involved in the learning process and that learning and working are seamlessly intertwined

• For non-exempt employees, all mandatory training must be compensated

• Knowledge is power