Effective training systems strategies and practices 6th edition

EFFECTIVE TRAINING SYSTEMS, STRATEGIES, AND PRACTICES

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F i f t h E d i t i o n

P. Nick Blanchard Eastern Michigan University

James W. Thacker University of Windsor

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Library of Congress Cataloging-in-Publication Data

Blanchard, P. Nick Effective training : systems, strategies, and practices / P. Nick Blanchard, James W. Thacker. — 5th ed. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-13-272904-8 ISBN-10: 0-13-272904-0 1. Employees—Training of. 2. Occupational training. I. Thacker, James W. II. Title. HF5549.5.T7B555 2013 658.3’124—dc23 2012013705

10 9 8 7 5 4 3 2 1

ISBN 10: 0-13-272904-0 ISBN 13: 978-0-13-272904-8

Dedication

This edition is dedicated to my wife, friend, and partner in all things, Claudia. Thanks for all you do, sweet pea ☺

N. B.

This book is dedicated to John from Saturn, proof that the American dream is still possible; to my wife Gabrielle who is responsible for us being able to live that dream,

and to Arnold, an old friend who I really miss.

J. T.

BRIEF CONTENTS

Preface ix

Chapter 1 Training in Organizations 1

Chapter 2 Aligning Training with Strategy 24

Chapter 3 Learning, Motivation, and Performance 56

Chapter 4 Needs Analysis 89

Chapter 5 Training Design 144

Chapter 6 Traditional Training Methods 199

Chapter 7 Electronic Training Methods 251

Chapter 8 Development and Implementation of Training 275

Chapter 9 Evaluation of Training 314

Chapter 10 Key Areas of Organizational Training 356

Chapter 11 Employee and Management Development 399

References 435

Glossary 462

Index 473

iv

CONTENTS

Preface ix

Chapter 1 TRAINING IN ORGANIZATIONS 1 Overview of Training 3

Trends in Training 8

Career Opportunities in Training 15

Important Concepts and Meanings 17

Focus on Small Business 21 Summary 21 Key Terms 22 Case Questions 23 Exercises 23 Questions for Review 23 Web Research 23

Chapter 2 ALIGNING TRAINING WITH STRATEGY 24 Overview 27

Strategic Planning 27

OD, Strategy, and Training 35

Putting It All Together 41

Focus on Small Business 47 Summary 49 Key Terms 50 Case Questions 54 Exercises 54 Questions for Review 55

Chapter 3 LEARNING, MOTIVATION, AND PERFORMANCE 56 A Few Words about Theory 58

Understanding Motivation and Performance 60

Understanding Learning 70

Social Learning Theory 73

Aligning Training Design with Learning Process 75

Motivation to Learn 76

Training That Motivates Adults to Learn 82 Summary 84 Key Terms 84 Questions for Review 85 Exercises 85 Web Research 85 Case Questions 88

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Chapter 4 NEEDS ANALYSIS 89 Why Conduct a Training Needs Analysis? 90

When to Conduct a TNA 91

The TNA Model 92

Where to Look for OPGs 94

The Framework for Conducting a TNA 94

Output of TNA 121

Approaches to TNA 124

Focus on Small Business 129

TNA and Design 131 Summary 133 Key Terms 138 Questions for Review 138 Exercises 138 Fobrics, Inc., Questions 139 Web Research 139 Case Questions 139 Appendix 4.1 140

Chapter 5 TRAINING DESIGN 144 Introduction to the Design of Training 145

Organizational Constraints 146

Developing Objectives 152

Why Use Training Objectives? 157

Facilitation of Learning: Focus on the Trainee 159

Facilitation of Learning: Focus on Training Design 168

Facilitation of Transfer: Focus on Training 180

Facilitation of Transfer: Focus on Organizational Intervention 187

Focus on Small Business 189

Outcomes of Design 191 Summary 193 Key Terms 196 Questions for Review 196 Exercises 196 Web Research 198

Chapter 6 TRADITIONAL TRAINING METHODS 199 Overview of the Chapter 200

Matching Methods with Outcomes 200

Lectures and Demonstrations 200

Games and Simulations 210

On-the-Job Training 225

Summary of Methods and When to Use Them 236

Audiovisual Enhancements to Training 236

Contents vii

Summary 247 Key Terms 247 Questions for Review 248 Exercises 248 Web Research 248 Case Questions 250

Chapter 7 ELECTRONIC TRAINING METHODS 251 Overview of the Chapter 252

Electronic Training (ET) and Its Components 252

ET Design and Development 264

Strengths and Limitations of ET 266 Summary 272 Key Terms 273 Questions for Review 273 Exercises 274 Web Research 274 Case Question 274

Chapter 8 DEVELOPMENT AND IMPLEMENTATION OF TRAINING 275 Development of Training 277

Implementation 291

Transfer of Training 303 Summary 306 Key Terms 311 Questions for Review 311 Exercises 311 Web Research 312 Case Questions 313

Chapter 9 EVALUATION OF TRAINING 314 Rationale for Evaluation 315

Resistance to Training Evaluation 316

So We Must Evaluate 318

Types of Evaluation Data Collected 318

Focus on Small Business 335 Summary 337 Key Terms 344 Questions for Review 345 Exercises 345 Case Questions 346 Web Research 346 Appendix 9.1 347 Appendix 9.2 354

viii Contents

Chapter 10 KEY AREAS OF ORGANIZATIONAL TRAINING 356 Overview 357

Orientation Training (Onboarding) 358

Diversity Training 369

Sexual Harassment Training 375

Team Training 379

Cross-Cultural Training 384

Other Training Programs and Issues 389 Summary 396 Key Terms 396 Questions for Review 397 Exercises 397 Case Questions 398

Chapter 11 EMPLOYEE AND MANAGEMENT DEVELOPMENT 399 Employee Development 400

Management Development 407

Our Approach to Management Development 409

General Overview of the Managerial Job 409

General Characteristics of Managers 411

Integration: Strategies and Management Characteristics 415

Management Development Implications 418

Sources of Knowledge/Skill Acquisition 420

Training for Executive-Level Management 424

Focus on Small Business 431 Summary 431 Key Terms 432 Questions for Review 432 Exercises 433 Web Research 433 Case Questions 434

References 435

Glossary 462

Index 473

PREFACE

The idea for this book came while fishing on a beautiful lake in northern Manitoba. Both of us were teaching a course about training and were unsatisfied with the texts available at the time. Our main concern was that we really needed two texts for the course: one providing the theory and scholarship surrounding the learning–teaching experience, and the other providing the application and “how-to” part of the experience. This text is still the only one (in our minds at least) that accomplishes this. The fifth edition retains the integration of theory with effective and practical training applications and adds new material while enhancing the ease of reading and understanding.

CHANGES TO THE FIFTH EDITION

CHAPTER 1: TRAINING IN ORGANIZATIONS

• Updated data related to state of the training industry. • Included a discussion of the ADDIE model, its history, and how our “Training Process

Model” is based on it, but providing a more detailed description of the process. • Rewrote the overview of what is involved in each step of the “Training Process Model” to

include more key issues and to clarify how they are related. • Included a section on “Advancements in Technology” to the “Trends in Training” section.

CHAPTER 2: ALIGNING TRAINING WITH STRATEGY

• Updated the Hershey case and demonstrated how training was tied to strategic planning. • Added a section using the Domtar case to show how to get from the strategic plan to the

training requirements. • Discussed the relationship of HRD with other units of HR department. • Included a section on the role of HR when training is outsourced.

CHAPTER 3: LEARNING, MOTIVATION, AND PERFORMANCE

• Rewrote significant portions of the “Social Learning Theory” section to clarify the concepts. • Rewrote (reduced) significant portions of the “Aligning Training Design with Learning

Process” section. The discussion in this chapter was changed to provide an introduction to the concepts and principles that are covered in depth in Chapter 5 . We also clarified and simplified the discussion of how to apply learning and motivation theories to the training process.

• Did a significant re-write of the “Motivation to Learn” section to clarify concepts. • Applied new research findings to each of the sections mentioned earlier.

CHAPTER 4: NEEDS ANALYSIS

• Organizational Analysis: Provided additional explanation of why focusing on employees contributing to the organizational performance gap (OGPs) is not “really a part of the per- son analysis”.

• Operational Analysis: Rewrote and provided more current references for competency- based job analysis.

• Deleted the Northern Telecom example and used the information in a table to show how competencies are applicable across jobs.

• Revised Table 4-8 for clarity and new information.

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• Moved the material on creating knowledge tests from Chapter 9 to Chapter 4 and inte- grated this with the other material on writing good questions.

• Modified questions for the end of chapter case. • Added a section on the connection of the needs analysis to evaluation of training. • Revised or replaced several figures and “Training in Action” examples.

CHAPTER 5: TRAINING DESIGN

• Provided a new opening case. • Added a more difficult objective to Table 5-7 and added an exercise that requires students

to take poorly written objectives and rewrite them in the proper manner. • Added discussion of the retention part of social learning theory for clarity. • Elaborated on what the trainer can do to increase trainee self-efficacy. • Added an exercise where students need to match up the events of learning with actual training • Created two new tables to clarify how to apply instructional design. • Integrated the “Design Theory” into the “Facilitation of Learning: Focus on Training

Design” section of this edition.

CHAPTER 6: TRADITIONAL TRAINING METHODS

• Replaced the opening case. • Created at the start of Chapter 6 , just after the “Matching methods with outcomes” section, a

table showing how well each of the traditional training methods are at achieving the different types of learning objectives. We explain the table and indicate that we are providing it here as a summary preview, but the rationale and explanation for the table occurs throughout the chapter. This should add clarity to the discussion of each method throughout the chapter.

• Added a section on coaching skills and strategies and included a coaching process model in the “Coaching” section.

• Revised many tables to improve readability and understanding.

CHAPTER 7: ELECTRONIC TRAINING METHODS

• Changed the title of the chapter and terminology within the chapter to reflect current usage (e.g., electronic training [ET] rather than computer-based training [CBT]).

• Created a table showing how well each of the electronic training methods is able to achieve the different types of learning objectives. We explained the table and indicated that we are providing it here as a summary preview, but the rationale and explanation for the table occur throughout the chapter.

• Reorganized the content of the chapter to provide a more easily understood explanation of the components of e-training and how e-training is delivered.

• Updated the chapter in terms of statistical information, research, technical developments and usage in practice. We eliminated outdated practices.

• Reviewed all examples for currency and added new examples that illustrate the use of computer based and electronically delivered forms of training.

CHAPTER 8: DEVELOPMENT AND IMPLEMENTATION OF TRAINING

• Discussed the use of different methods in training to address individual differences in trainees, and how you can help assure various individual differences are addressed in a training program.

• Added discussion of the importance of refreshments in training and relating it to motivation.

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• Provided a list of what the trainer needs to do both prior to training and the day of training to assure there are no glitches in the training day

• Added information related to the importance of supervisor and peer support in the trans- fer of training.

CHAPTER 9: EVALUATION OF TRAINING

• Moved the section on “Utility Analysis” to an appendix. • Moved the section on developing knowledge tests to the Needs Analysis chapter and

deleted that material from this chapter. • Rewrote some portions in the return on investment section for clarification.

CHAPTER 10: KEY AREAS OF ORGANIZATIONAL TRAINING

• Expanded the section on team training to include how teams are used in the work place and why they are important.

• Updated the statistics related to diversity, sexual harassment, team training, cross cultural training, disability, and safety information.

CHAPTER 11: EMPLOYEE AND MANAGEMENT DEVELOPMENT

• Changed the header from “Coaching” to “Executive Coaching.” Added a section to execu- tive coaching on establishing expectations for trust and confidentiality. Also added a Train- ing in Action related to this.

• Made minor additions and rewording for clarification. • Explained why in 360 degree performance appraisal the use of peers and friends of trainee

should not be a problem • Discussed the value of HRIS in the development of employees

UNIQUE CHARACTERISTICS OF THIS BOOK

This book differs from others on the same topic in a number of ways. For example, we

• demonstrate how HRD fits into the strategic planning process; • show the important relationships between organizational development (OD) practitioners

and trainers; • provide an overarching model of the training process, with a more detailed model of each

phase of the process, making it easy to see how each phase connects and contributes to achieving training objectives;

• include a small-business perspective to training and its implementation; • provide a step-by-step process for developing learning objectives with many examples of

good and bad objectives; • integrate learning and design theory into the creation of training programs so the reader

can see how these theories help in the design of effective training; • incorporate both micro and macro theories of design perspectives into the design of training; • Use a case (Fabrics, Inc.) to provide an example of how one would develop an actual train-

ing program. The case takes the reader through what actually occurs in the development of a training program, beginning with Chapter 4 on needs analysis and then, step-by-step through design, development, and evaluation. We have provided a lot of detail so that the reader can see what is actually done. Use of this case will help students understand the “how to” aspect of training design and development.

• provide numerous examples of actual training situations (called Training in Action) throughout each chapter to highlight important aspects of the training process;

xii Preface

• use a contingency approach for each training process, rather than a “one best way,” identifying alternative approaches and their associated strengths and limitations; and

• provide comprehensive cases in Chapters 1 and 2 that are applicable throughout the text and are often referred to in the remaining chapters.

Other aspects of the text that we believe are important are as follows:

• Learning objectives at the beginning of each chapter • Key terms identified in each chapter, and a glossary providing their definitions at the end

of the book • A case at the beginning of each chapter • Questions, cases, and exercises at the end of each chapter • An instructor’s manual with sample syllabi, suggested answers to questions at the end of

the chapters, and a “test bank” of questions • PowerPoint slides of all tables and figures

Learning objectives provide trainees with an understanding of what the training is trying to accomplish, and so they are an important part of the training process. Better learning is achieved if, at the beginning of training, people know where they should focus their attention. Therefore, at the beginning of each chapter, we identify its learning objectives, stating what the reader should be capable of doing after completing the chapter. (The value of learning objec- tives and the characteristics of good objectives are discussed in depth in Chapter 5 ).

Following the learning objectives is a case example to stimulate the reader to think about the issues that will be raised in the chapter. Throughout the chapter, we refer back to the case to make specific points, asking the reader relevant questions about the case. Some of the cases are presented in totality at the beginning of the chapter; others are split into two parts: the first part stopping at a critical point and the remainder presented at the end of the chapter. This allows the reader to apply the concepts and principles from the chapter in evaluating the actions taken and how the issues were handled. It also allows the reader to see the resulting consequences.

We continue to differ from other training books in that we place training activities in the con- text of organizational strategy. Whether you are a student or a practitioner, this book will be of both conceptual and practical value for developing training programs that meet strategic and tactical needs. At the same time, an overarching model of the training process will guide you step-by-step through the training procedures, from initial needs analysis through the evaluation of training’s effectiveness. As human resource (HR) competencies become a significant competitive advantage, the pace and intensity of organizational training increases dramatically. Human resource develop- ment (HRD), or “performance improvement,” departments must demonstrate that their programs enhance competencies that are of strategic value. As a company’s strategies change, the types of management competencies and styles also need to change, and HRD is responsible for this align- ment. We address these and related issues, because we believe that effective training practices are determined by the organizational context in which they occur.

At the end of each chapter are discussion questions, cases, and exercises to enhance understanding. The instructor’s manual provides more information about this material and offers additional ideas for teaching. It also includes sample course outlines and a test bank. PowerPoint slides for each chapter are available. You can access these supplements by visiting www.pearsonhighered.com/blanchard and clicking on Instructor Resources.

Another important difference in this book is the overarching model of the training process and its subprocesses. This model provides an understanding of the logical sequencing of train- ing activities, from needs analysis to implementation and evaluation. The model demonstrates training as a system and how its processes are interconnected. Thus each phase of the training process (i.e., needs assessment, design, development, implementation, and evaluation) is cov- ered in its own chapter. These chapters begin with a description of the types of input needed to complete that phase and the types of output produced. The bulk of each chapter provides a

www.pearsonhighered.com/blanchard
Preface xiii

step-by-step description of how the input is transformed into the output. The output from one phase then becomes the input for the next.

As with earlier editions, for ease of reading, we have not used the he/she convention when the context of the material requires a gender reference. Instead, we alternate the use of gender throughout the text. Reviewers were universally appreciative of this aspect of the text.

Most training books focus on large organizations that have access to many resources, ignoring the smaller companies with more limited resources. We address the training issues faced by smaller businesses in two ways. First, the contingency approach provides alternative activities and procedures—some of them compatible with limited resources. Throughout the book, we address the applicability of various approaches to the smaller business. Second, many of the chapters include sections directed specifically at the small business. These sections pro- vide possible alternatives and describe what some small businesses are actually doing in these areas. Unfortunately, the literature on small-business training practices is relatively sparse. If you know of successful small-business practices, we would love to hear about them and include them in subsequent editions.

We are committed to continuously improving this book to enhance learning and make teaching from it a joy. To that end, we ask you to contact us with your thoughts, applications from the research, training techniques, exercises, and so on, so that we can share them with oth- ers. You can reach us at Nick.Blanchard@emich.edu or jwt@uwindsor.ca. Of course, you will be acknowledged for your contribution if it is included in future editions.

ORGANIZATION AND PLAN OF THE BOOK

We begin Chapter 1 with a comprehensive case that is used throughout the text as a reference in discussions. We then provide an overview of training, its roles, and its goals, using an open sys- tems perspective. In this section, we discuss how training fits into the HR function, and how the training function fits into the structure of large and small companies. This section also presents the overarching training process model, which is used to outline the organization of the book and provide an overview of the content of the remaining chapters. This is followed by current trends in HRD. Included is a discussion of the legal issues that affect HRD activities such as equity, required training, and liability. We conclude this chapter by defining the key terms used throughout the text.

Chapter 2 discusses strategic planning and the roles HR and HRD play in this process. Here we show how input from the HR function in general and the HRD function in particular can influence strategic direction. We then proceed to discuss how these functions develop internal strategies to support the overall strategic plan. The case at the start of the chapter pro- vides a discussion point for many of the topics in this and subsequent chapters, allowing the student to walk through a case from the beginning of the strategic plan to the development of training. Throughout the text, we often refer back to this chapter to demonstrate how strategic issues drive HRD decisions. We also provide an important link between OD practitioners and trainers, showing how the competencies of each of these disciplines complement and support the objectives of the other. In the remaining chapters, we use an OD philosophy to address ways in which the training process and outcomes can be integrated into other organizational systems. This integration of the training process into a systems perspective provides the reader with an understanding of where training fits in the organization and how it operates. This is followed by a discussion of how strategies for overcoming resistance to change are applicable to training activities.

Chapter 3 provides the theoretical and conceptual framework for understanding the training process. It begins with a short discussion of the value of theory in leading to new and practical applications. A model of the factors that determine human performance (motivation, knowledge, skills, abilities, and environment) is followed by a review of theories of motiva- tion and learning. These theories are discussed in terms of their application to training. This is

xiv Preface

followed by a discussion of overcoming resistance to learning and designing training that motivates trainees to learn. The concepts and principles developed here are referred to throughout many of the following chapters, tying particular practices to the theoretical ratio- nale for those practices.

Chapter 4 addresses needs analysis, the first phase of the training model presented in Chapter 1 . An expanded graphic of this phase is presented and discussed at the outset so the reader will understand the organization of the chapter. The philosophy of needs analysis is dis- cussed in terms of both its proactive use (as related to the strategic plan) and its reactive use (to deal with immediate concerns and changing conditions). The relationship between these two approaches is also explored. The steps involved in the needs analysis are discussed, along with the sources from which data can be gathered and to set training priorities. The chapter ends with a real example of a training process for Fabrics, Inc., walking the student through the needs analysis as it is actually done for the company.

Chapter 5 begins with the second phase of the training model: training design. The outcomes of the needs assessment phase are shown as inputs to this phase. Another input into the design phase is organizational constraints. We discuss possible constraints and their effects on training. The chapter then identifies the activities conducted in the design phase of training. First is the development of the training/learning objectives. Here a formula for development of learning objectives is provided along with numerous examples of effective objectives. We then provide a table that provides actual first tries at writing objectives and those same objectives after being refined. The rational for using objectives is also discussed.

The discussion then moves to the identification of factors that will facilitate learning. The learning facilitation factors focus separately on the trainee and the training design. We use Social Learning Theory and the Gagne–Briggs instructional process to explain the process of learning so students will better understand why various methods work the way they do. We also demon- strate how the theory and instructional process guides the step-by-step design of a training program. Next, factors that facilitate the transfer of learning back to the trainee’s job are dis- cussed. These factors are broken down into training design factors and organizational systems factors back on the job. At the end of the chapter, Fabrics, Inc., is revisited, and the process of design is examined step-by-step.

Chapter 6 provides information on traditional methods of training, including lectures, cases, games, simulations, and on-the-job training. Using learning theory as a framework, the various methods of training are described, along with their strengths and limitations. Included here are the effectiveness at developing knowledge, skills, or changing attitudes; the relative costs; trainer versus trainee control over what is learned and how; and issues related to training group characteristics. Included in the discussion of each method is the practical application, or how to actually use the method effectively.

Chapter 7 focuses on what we call electronic training (ET) encompassing all training that is created and delivered electronically. Again, using learning theory as a framework, the various forms of this approach are described along with their respective strengths and weaknesses. In addition, the discussion covers the various methods of delivery (the Internet, intranet, DVD, etc.) and learning management systems.

Chapter 8 is divided into two parts: development and implementation of training. It begins with a summary table showing the relative effectiveness of the various methods for enhancing knowledge, skill, and/or attitudes. The development of the training program is discussed in terms of our model of the process. The inputs from previous phases are discussed in terms of their influence on the characteristics of the training program being developed. Here actual forms that you might use, tables that provide step-by-step procedures for developing aspects of training, issues to consider in developing training using different methods, and so

Preface xv

forth, are provided. At the end of this chapter, Fabrics, Inc., is revisited to show some develop- mental outputs.

The model for implementation is then presented, with the outputs from the development phase becoming the inputs for implementation. Here we describe the process of putting on the training and what needs to be done to ensure success. Again the focus is on practical applica- tions, beginning with hints to assist trainers in effective use of the lecture method. Then we pres- ent a practical guide related to things to consider in the implementation of training, including a dry run and pilot program. Finally, we address some of the critical issues related to transfer of training.

Chapter 9 begins with the model for evaluation and addresses the issues and activities involved in the evaluation phase of the overarching training model. While various evaluation issues are discussed in each phase of the training model, we provide the bulk of the information at this point in the book (after development and implementation). However, we stress the importance of incorporating appropriate evaluation activities into each of the other phases of the model. We provide guidance and actual examples of the various types of evaluation that can be used. At the end of the chapter, we again revisit Fabrics, Inc., to provide the process that takes place at this stage of training. Here, we provide actual evaluation forms that are used to test employees from Fabrics, Inc., at the end of training. We also have two appendicies to this chap- ter that provides a more advanced discussion of reliability, validity and utility issues.

Chapter 10 contains two parts. First, the focus is on five special training topics: orientation, diversity, sexual harassment, team training, and cross-cultural training. For these first five top- ics, we provide information on what companies are currently doing and why it is important. Then, for each of the five, we discuss in detail how to develop that type of training, using the training model provided in the previous chapters. For the orientation training (sometimes referred to as “onboarding”), we provide a hypothetical example for readers to follow. Of course, we also provide a detailed discussion on how to develop the training. Finally, several other special training topics are addressed in terms of what organizations are doing and why it is important.

Chapter 11 begins with a focus on employee development and how it can help in retaining employees and keeping them motivated while providing increased organizational flexibility. Different approaches to employee development are discussed, including develop- ment in the current job, job rotation, and special assignments. The responsibilities of the employee, the supervisor, the HR unit, and the organization in terms of employee develop- ment are also discussed.

We then turn to management development with an explanation for why managers are singled out. Managerial competencies, in addition to personal traits or styles, are discussed in terms of effectiveness. We adopt a contingency approach to management development in the sense that we provide a model that allows the training professional to determine what compe- tencies a manager in a particular organization needs. The model integrates the competitive strategy, organizational structure, and technology literature into a continuum that describes the organizational context in which managers must operate. This context then determines the rela- tive value to the company that various managerial competencies and characteristics (such as style) are likely to provide. This chapter also discusses three important areas of managerial knowledge and competency: understanding of the organizational context, self-awareness and diagnostic skills, and adaptability. The chapter also includes a discussion of the special needs of technical managers, and a specific section is provided to highlight the special issues related to the training of top managers and executives.

xvi Preface

ACKNOWLEDGMENTS

Ever since we conceived of the book on that sunny day on a boat in northern Manitoba while catching our share of walleye, there have been many who have contributed to its success. We are immensely grateful to all of them. Of course, any errors, omissions, or other mistakes can be attributed to us.

We hope you find this book useful and easy to understand. Many have contributed to this goal. The people at Prentice Hall, as always, were very helpful. Special thanks to Sarah Holle, who has worked with us from the start of this edition. We are very appreciative of the hard work put in by our production editor, Holly Shufeldt, and the team at Aptara, whose diligence and skill in copyediting and production created the final images, text, and layout for this edi- tion. They have made the book better than it otherwise would have been.

We would like to acknowledge the contributions of both the academics and practitioners who have shared their insights with us. Specifically, we would like to thank Mitchell Fields, University of Windsor, whose examples and suggestions have stood the test of time. Special thanks also go out to Greg Huszczo, Rick Camp, and Mary Vielhaber (who has provided us with a new coaching example) all of Eastern Michigan University. Each has made valuable con- tributions that are incorporated in this book. Finally, but most importantly, a very big thank-you to the reviewers of the fourth edition of this book, whose feedback helped us along the road of continuous improvement.

ABOUT THE AUTHORS

P. Nick Blanchard Nick completed his undergraduate studies in psychology at UCLA, his master’s degree in psychology at San Diego State University, and his doctorate in industrial/ organizational and social psychology at Wayne State University. He is currently a professor in the College of Business at Eastern Michigan University, where he has also served as dean, associate dean and head of the management department. His writings appear in both scholarly and applied publications, including International Journal of Training and Development, Human Resource Development Quarterly, Journal of Managerial Psychology, and Basic and Applied Social Psychology . His earlier books in training are Toward a More Organizationally Effective Training Strategy and Prac- tice and Effective Training (co-authored with Dr. Thacker) . Dr. Blanchard has served as consultant and trainer to many organizations including Bethlehem Steel, Chrysler Corporation, Domtar Gypsum, Ford Motor Company, and Navistar in the private sector and the cities of Ann Arbor and Ypsilanti and the State of Michigan Department of Transportation in the sector public.

James Thacker Jim received an undergraduate degree in psychology from the University of Winnipeg in Winnipeg, Manitoba, and his doctorate in industrial and organizational psychol- ogy from Wayne State University. He is currently professor emeritus at the University of Wind- sor’s Odette School of Business following his retirement in 2007, after 25 years of teaching, publishing, and otherwise doing his part for the greater good. His research has been published in both academic journals ( Journal of Applied Psychology, Personnel Psychology, and Academy of Management Journal ) and practitioner journals ( Journal of Managerial Psychology and The Human Resource Consultation: An International Journal ). He coauthored the first Canadian edition of Man- aging Human Resources with Wayne Cascio, published in 1994, and, with Nick Blanchard coau- thored each edition of Effective Training: Systems, Strategies, and Practices .

Jim has been a consultant and trainer in the private sector (Ameritech, Ford, Hiram Walk- er’s, Navistar, H.J. Heinz, and Honda Canada) and public sector (Revenue Canada, CanAm Friendship Center, and City of Windsor). Before obtaining his doctorate, Jim has worked for a gas utility as a tradesman and served as vice president of his local union (Oil, Chemical, and Atomic Workers) for a number of years. This firsthand experience as a tradesman and union official, combined with his consulting and academic credentials, provides Jim with a unique combination of perspectives and skills.

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1

One Learning Objectives After reading this chapter, you should be able to: ■ Describe the components of a general open systems model. ■ Describe how an open systems model applies to the training unit of

an organization. ■ List and describe the interrelationships among the five phases of the training

process model. ■ Explain how the training model can be applied to organizational improvement and

problem solving. ■ Describe the challenges/opportunities facing training. ■ Define key terms used in the training literature. ■ Describe the benefits of integrating organizational development and

training principles. ■ Describe the differences in how small and larger businesses might implement

the training process model.

Training in Organizations

TAKING CHARGE AT DOMTAR: WHAT IT TAKES FOR A TURNAROUND* Domtar is the third largest producer of uncoated freesheet paper in North America. In the decade prior to 1996, Domtar had one of the worst financial records in the pulp and paper industry. At that time it was a bureaucratic and hierarchical organization with no clear goals. Half of its business was in “trouble areas.” Moreover, the company did not have the critical mass to compete with the larger names in the field. The balance sheet was in bad shape, and the company did not have investment-grade status on its long-term debt.

*Swift, A. “Royer’s Domtar turnaround.” Financial Post (October 6 2003), FP3. Allen, B. 2003. The Domtar differ- ence. www.pimaweb.org/conferences/june2003/BuddyAllen.pdf . Anonymous (January 2001) Partnership between Domtar and Cree First Nations brings results. www.diversityupdate.com . Richard Descarries, Manager, Corporate Communications and External Relations, Domtar, personal communication (2004).

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www.pimaweb.org/conferences/june2003/BuddyAllen.pdf
www.diversityupdate.com
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In July of 1996, Raymond Royer was named president and chief executive officer (CEO). This was quite a surprise because, although Royer had been successful at Bombardier, he had no knowledge of the pulp and paper industry. Many believed that to be successful at Domtar, you needed to know the industry.

Royer knew that to be effective in any competitive industry, an organization needed to have a strategic direction and specific goals. He decided to focus on two goals: return on investment and customer service. Royer told Domtar executives that to survive, they needed to participate in the consolidation of the industry and increase its critical mass. The goal was to become a preferred supplier. The competitive strategy had to focus on being innovative in product design, high in product quality, and unique in customer service. At the same time, however, it had to do everything to keep costs down.

When Royer took over at Domtar, he explained to the executive team that there were three pillars to the company: customers, shareholders, and ourselves. He noted that it is only “our- selves” who are able to have any impact on changing the company. He backed up his words with action by hiring the Kaizen guru from Bombardier. Kaizen, a process of getting employ- ees involved by using their expertise in the development of new and more effective ways of doing things, had been very effective at Bombardier. Royer saw no reason why it would not be successful at Domtar. Royer also knew that for the new strategic direction and focus to be successful, everyone needed to both understand the changes being proposed and have the skills to achieve them. The success of any change process requires extensive training; there- fore, training became a key part of Royer’s strategy for Domtar.

This last point reflects the belief that it is the employees’ competencies that make the dif- ference. The Domtar Difference, as it is called, is reflected in the statement, “tapping the intel- ligence of the experts, our employees.” Employees must be motivated to become involved in developing new ways of doing things. Thus, Domtar needed to provide employees with incentives for change, new skills, and a different attitude toward work. The introduction of Kaizen was one tactic used to achieve these goals.

Training at Domtar went beyond the traditional job training necessary to do the job ef- fectively and included training in customer service and Kaizen. This is reflected in Domtar’s mission, which is to

• meet the ever-changing needs of our customers, • provide shareholders with attractive returns, and • create an environment in which shared human values and personal commitment prevail.

In this regard, a performance management system was put in place to provide a mech- anism for employees to receive feedback about their effectiveness. This process laid the groundwork for successfully attaining such objectives as improving employee performance, communicating the Domtar values, clarifying individual roles, and fostering better commu- nication between employees and managers. Tied to this were performance incentives that rewarded employees with opportunities to share in the profits of the company.

Has Royer been successful with his approach? First-quarter net earnings in 1998 were $17 million, compared with a net loss of $12 million for the same time period in 1997, his first year in office. In 2002, third-quarter earnings were $59 million and totaled $141 million for the year. That is not all. Recall his goal of return on equity for shareholders. Domtar has once again been included on the Dow Jones sustainability index. Domtar has been on this list since its inception in 1999 and is the only pulp and paper company in North America to be part of this index. To be on the list, a company must demonstrate an approach that “aims to create long-term shareholder value by embracing opportunities and managing risks that arise from economic, environmental, and social developments.” On the basis of this, it could be said that Royer has been successful. In 2003, Paperloop, the pulp and paper industry’s international research and information service, named Royer Global CEO of the year.

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It was Royer’s sound management policies and shrewd joint ventures and acquisitions that helped Domtar become more competitive and return their long-term debt rating to in- vestment grade. However, joint ventures and acquisitions bring additional challenges of in- tegrating the new companies into the “Domtar way.” Again, this requires training.

For example, when Domtar purchased the Ashdown Mill in Arkansas, the management team met with employees to set the climate for change. The plan was that within 14 months, all mill employees would complete a two-day training program designed to help them un- derstand the Domtar culture and how to service customers. A manager always started the one-day customer focus training, thus emphasizing the importance of the training. This man- ager returned again at lunch to answer any questions as the training proceeded. In addition, for supervisor training, each supervisor received skill training on how to effectively address employee issues. How successful has all this training been? Employee Randy Gerber says the training “allows us to realize that to be successful, we must share human values and integrate them into our daily activities.” The training shows that “the company is commit- ted to the program.” Tammy Waters, a communications coordinator, said that the training impacted the mill in many ways and for Ashdown employees it has become a way of life.

The same process takes place in Domtar’s joint ventures. In northern Ontario, Domtar owns a 45 percent interest in a mill, with the Cree of James Bay owning the remaining 55 percent. Although Domtar has minority interest in the joint venture, training is an important part of its involvement. Skills training still takes place on site, but all management and team- work training is done at Domtar’s headquarters in Montreal.

Royer’s ability to get employees to buy into this new way of doing business was neces- sary for the organization to succeed. Paperloop’s editorial director for news products, Will Mies, in describing why Royer was chosen for the award, indicated that they polled a large number of respected security analysts, investment officers, and portfolio managers as well as their own staff of editors, analysts, and economists to determine a worthy winner this year. Raymond Royer emerged a clear favorite, with voters citing, in particular, his talent for turnaround, outstanding financial management, and consistently excellent merger, acquisi- tion, and consolidation moves as well as his ability to integrate acquired businesses through a management system that engages employees. Of course, that last part, “a management system that engages employees,” could be said to be the key without which most of the rest would not work very well. That requires training.

OVERVIEW OF TRAINING

Everyone in an organization is affected by training. Everyone receives training at one time or another, usually multiple times. Managers and supervisors need to be sure that their direct re- ports have the competencies required to perform their jobs. Subject matter experts (managers and others) are asked to provide training. Significant budget dollars are allocated to training employees. Although the US economy has suffered significant losses over the last several years, companies still dedicate substantial resources to employee learning. In 2010, it is estimated that over $171.5 billion was invested in training activities. Most ($103 billion) was devoted to inter- nal training services, with the rest allocated to external providers. The average expenditure per employee increased from $1,081 in 2009 to 1,228 in 2010. 1

Why do companies continue to invest in training, even in the most difficult economic times? Evidence shows that companies investing more in training produce improved financial results in terms of higher net sales, gross profits per employee, stock growth, and ratio of market to book value. 2 For example, in a Mutual of Omaha study, it was determined that those with higher levels of training generated, on average, an additional $150,000 of new business premium each year. However, training doesn’t always lead to an improved bottom line. Many companies report that they perceive little value from their training initiatives. 3 Obviously, companies that report

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very positive improvements are using more effective training practices than those that do not. Effective training differs from ineffective training in terms of the processes used to determine what employees need to learn and how training is designed and implemented. The first three chapters of this book provide you with an understanding of the context and theoretical founda- tion on which effective training is based. Chapters 4 through 8 provide you with an in-depth understanding of how to determine training needs and how to design, develop, and implement training to meet those needs. Even companies that have reported unsatisfactory results from their training efforts are doing at least one thing right—they are evaluating their training and can take corrective action. Companies that don’t evaluate their training don’t have a clue about its effectiveness. We believe that it is useful, first, to give an overview of what an effective training unit should accomplish in an organization. This chapter and the next cover a broad set of organi- zational issues that provide the context for developing and implementing effective training. As we discuss this context, we will be referring back to the Domtar case from time to time, to illus- trate in concrete ways how training relates to organizational effectiveness.

Training System and Processes

Training provides employees with the knowledge and skills to perform more effectively. This allows them to meet current job requirements or prepares them to meet the inevitable changes that occur in their jobs. However, training is only an opportunity for learning. What is learned depends on many factors, such as the design and implementation of training, the motivation and learning style of the trainees, and the organization’s learning climate.

Training is also part of an integrated system in which performance is measured against crite- ria (best practices benchmarks) that are tied to strategic objectives. Training is used extensively to help employees understand how they can assist in meeting corporate objectives. Clearly, Domtar knows that. Recall, when Domtar purchased the Ashdown Mill, training was an immediate focus. Within 14 months, all mill employees completed a two-day training program so they would un- derstand Domtar’s culture and know how to service customers in the appropriate manner. Always having a manager kick off the training and later return to answer questions shows the importance Domtar attached to training. But effective training requires more than just having key managers available. It requires that effective systems are in place to address the performance issues facing the organization. With that in mind, we turn to the design of an effective training system.

TRAINING AS AN OPEN SYSTEM Figure 1-1 shows a general open systems model . 4 Open systems have a dynamic relationship with their environment; closed systems do not. Obviously, a business must interact with its environment, making it an open system.

As Figure 1-1 indicates, an open system depends on the environment for the input that sup- ports the system. A business, for example, needs raw materials, capital, and employees in order to operate. The environmental inputs are transformed into outputs by the system’s processes. For a business, these would include its products and services. The system’s outputs flow into the en- vironment and might or might not influence future inputs into the system. In effective systems, the system output influences the environment to supply new supportive input to the system.

A system, such as a business, must be responsive to the needs and demands of its environ- ment because the environment provides the input needed for the system to replenish itself. For

Open System

System‘s External Environment

Input Process Output

FIGURE 1-1 General Open Systems Model

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example, if a business is responsive to the needs of society by providing valued goods and ser- vices (output), it receives financial and goodwill credits (input). The business uses these inputs to continue operating. If the business does not provide sufficient value to its environment, it will fail because the environment will not provide the necessary input for the system to replenish itself.

Many open systems exist as part of another open system and, therefore, are called subsys- tems of that larger system. For example, a product assembly system is a subsystem of a manufac- turing system, which itself is a subsystem of the company, which is a subsystem of the industry, and so on. Training can be seen as a subsystem within the larger human resources (HR) unit, which itself is a subsystem of the company. Figure 1-2 illustrates some of the exchanges that take place between the training system and the larger organizational system. The organization’s mis- sion, strategies, resources, and the like, all represent sources of input into the training subsystem. Of course, if the training department is part of a larger HR function, then these inputs would be filtered through that system. Organizational and employee needs, training budgets, staff, equipment, and so forth, are all inputs from the organization to the training subsystem. Training processes transform these inputs into usable output for the organization (improved knowledge, skills, and attitudes; job performance; and so on). Looking at the training unit from an open system perspective shows how interconnected training activities are with what is happening elsewhere in the organization. The point here is that the organization invests money in the train- ing function, for which it expects a favorable return. Periodically, the organization will examine the returns from training and determine whether the training system is working properly and what further investment is appropriate. Training in Action 1-1 demonstrates the consequences of a poor match between the training system and the organizational environment.

THE TRAINING PROCESS MODEL This book will take you through the complete training process as it would be conducted under ideal conditions. Unfortunately, most organizations do not op- erate in ideal conditions. Insufficient financial resources, time, and training professionals rep- resent just a few of the challenges faced by most companies. Recognizing these limitations, we also provide variations to training practices and systems that, although not ideal, do a reason- able job of accomplishing training objectives . Of course, these shortcuts exact a price, and we identify the major consequences associated with these shortcuts. Thus, we try to provide both “ideal” and more practical approaches to implementing the training processes. Nonetheless, even in less-than-ideal conditions, all of the training processes are critical to the success of train- ing. Although less-than-ideal methods may be used to carry out the training processes, elimina- tion of one or more of the processes places the entire effort at grave risk.

Effective training is not just running a lot of people through a lot of training programs. To view training this way is shortsighted. Instead, training should be viewed as a set of integrated

Mission Strategy Structure Policies Procedures Finances Resources People Products Technology

Training's Organizational Environment

Training Subsystem

Organizational Needs Employee Needs

Budget Equipment

Staff

Input

Analysis Design

Development Implementation

Evaluation

Process

Knowledge Skills

Attitudes Motivation

Job Performance

Output

FIGURE 1-2 Training as an Open System

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processes in which organizational needs and employee capabilities are analyzed and re- sponded to in a rational, logical, and strategic manner. When training is conducted this way, both the employees’ and organization’s performance will improve. This will increase the value of the training unit, and, as a result further investment in training is likely to occur. Our model of training processes, depicted in Figure 1-3 , reflects this approach.

Figure 1-3 is merely an overview of the process. A more detailed figure for each phase is provided at the beginning of each relevant chapter, with the input and output of each process described in considerably more detail. Our model is an adaptation of what has be- come widely known as the ADDIE model. ADDIE is an acronym for the major processes of training: A nalysis, D esign, D evelopment, I mplementation and E valuation. Many, including your authors have attempted to find the original source for this model, but apparently there is no single source. It seems to have evolved over time to become an umbrella term without a fully articulated underlying structure. 5 Like others, we have used ADDIE as the generic basis for our own model of how training should proceed. In the following paragraphs, we will briefly describe each of the ADDIE phases and their relevant inputs and outputs. This model is used extensively throughout the book , so it is important to be familiar with it.

The training process begins with some type of triggering event. A triggering event occurs when a person with authority to take action believes that actual organizational performance (AOP) is less than the expected organizational performance (EOP) . For example, the quality standard (the EOP) at Company X is three rejects per thousand. An examination of the data for the previous month indicates that the actual quality level (AOP) was 17 rejects per thousand. If a person with authority to take action sees this gap as a concern, it would trigger an analysis of why the number of rejects is so high. This analysis is discussed next.

Analysis Phase The analysis phase begins with the identification of the organizational performance gap (AOP is less than EOP). Things such as profitability shortfalls, low levels of cus- tomer satisfaction, or excessive scrap are all examples of a current performance gap. Another type of performance gap is future oriented. Here, the company is seen as likely to perform poorly in the

Team Building Sizzles, Then Fizzles

1-1 Training in Action

The director of a city utilities department felt that cre- ating employee problem-solving teams would improve the quality of operations and the efficiency of the depart- ment. All employees were provided the opportunity to participate in team-building and problem-solving train- ing. About 60 percent of the employees, including the director and his management group, signed up for the training. Three-hour training sessions took place once a week for ten weeks. Working on a common process within their department, employees were grouped into teams for three weeks of team-building training and seven weeks of problem-solving training.

At the beginning of the problem-solving training, each team identified a problem in its area of operation. Each team then worked through the problem as they progressed though each step of the training. The team members were delighted to be learning new skills while working on a real problem. By the end of training, each group actually solved, or made significant progress toward solving, the

problem it was working on. Evaluations taken at the con- clusion of training indicated that trainees enjoyed the train- ing and understood the steps, tools, and techniques of team building and problem solving. The director was pleased with the results and submitted a report documenting the successes of the training to the city manager.

Follow-up evaluation conducted six months later showed only one team still in operation. The other teams fell apart for various reasons, such as excessive workloads, little recognition being given when problems were solved, nontrained employees resisting making changes in work processes, or teams being ridiculed by those who had not participated in training. Clearly, the training did not achieve the desired outcomes. If the director had understood the sys- tem and what was and was not rewarding, a more success- ful outcome could have been achieved. By using the analysis phase of the Training Process Model, the relevant aspects of the system would have been identified and adjustments to either the system or the training could have been made.

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future unless changes are made. For example, if an organization wanted to install robotic equip- ment in six months but employees were not able to program the robots, then there is an expected performance gap in the future. Once a performance gap exists, the cause must then be determined. *

Once the cause is determined, and its elimination is believed to be important, the elimina- tion of the cause becomes a “need” of the organization

The analysis phase is often referred to as a training needs analysis (TNA) . However, both training and nontraining needs are identified with this process, so it is incorrect to say it only focuses on training needs. The cause of the performance gap might be inadequate knowledge, skills, or attitudes (KSAs) of employees. If so, then training is a possible solution. However, KSA deficiencies are only one of many reasons for performance gaps. Other reasons, such as motivation or faulty equipment, must be separated from KSA deficiencies, as these are non- training needs and require a different solution. In the analysis phase, the causes of a perfor- mance gap are identified, whether due to KSAs or something else. Those performance gaps caused by KSA deficiencies are identified as “training needs” because training is a solution. All other causes are defined as nontraining needs, and require other types of solutions.

The analysis phase also attaches priorities to the training needs that are identified. Not all needs will have the same level of importance for the company. This process of data gathering and causal analysis to determine which performance problems should be addressed by training is the analysis phase of the training process. It will be discussed in great detail in Chapter 4 .

Design Phase The training needs identified in the analysis phase, as well as areas of constraint and support, are the inputs to the design phase . An important process in the design phase is the creation of training objectives. These provide direction for what will be trained and how. They specify the employee and organizational outcomes that should be achieved as a re- sult of training and become inputs to the development and evaluation phases of the model. As such they become the evaluation objectives.

Needs Analysis Phase

Input Process Output

Design Phase

Input Process Output

Development Phase

Input Process Output

Implementation Phase

Input Process Output

Evaluation Phase

Input Process Output

Outcome Evaluation Data

Process Evaluation Data

Triggering Event

FIGURE 1-3 Training Processes Model

* There are often multiple causes of a performance gap, but we are using a single cause here for simplicity.

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Another part of the design process is determining how the organizational constraints will be addressed by the training. Finally, identifying the factors needed in the training program to facilitate learning and its transfer back to the job are key outcomes from the design phase. All of these factors are used to create the guidelines for how the training will be developed. The design phase is the topic of Chapter 5 . Chapters 6 and 7 provide detailed descriptions of the various methods that can be used to deliver the content of the training.

Development Phase Development is the process of using the guidelines from the design phase to formulate an instructional strategy that will meet the training objectives. Obtaining or creating all the things that are needed to implement the training program is also a part of this phase. The instructional strategy describes the order, timing, and combination of methods and elements to be used in the training program to meet the objectives. The training objectives provide the focus for program development and the guidelines from the design phase set the parameters for what will and will not work. Outputs from this phase are all of the things needed to implement the training program. These include the specific content for of the training, instructional methods used to deliver the content, materials to be used, equipment and media, manuals, and so forth. These are integrated into a coherent, well-organized training plan focused on achieving the train- ing objectives. These outputs of the development phase serve as inputs to the implementation phase. Both the development phase and the implementation phase are the focus of Chapter 8 .