Managing training and development 7th edition

Employee Training and Development

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Employee Training and Development

Seventh Edition

Raymond A. Noe The Ohio State University

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EMPLOYEE TRAINING AND DEVELOPMENT, SEVENTH EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2017 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2013, 2010, and 2008. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

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Library of Congress Cataloging-in-Publication Data

Noe, Raymond A., author. Employee training and development / Raymond A. Noe, The Ohio State University. -- Seventh edition. pages cm ISBN 978-0-07-811285-0 (acid-free paper) 1. Employees--Training of. I. Title. HF5549.5.T7N59 2016 658.3’124--dc23 2015027006

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This book is dedicated to family, friends, colleagues, and all of the current and past hard-working people at McGraw-Hill who have supported and contributed to making seven editions of this book possible.

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Traditionally, training and development were not viewed as activities that could help com- panies create “value” and successfully deal with competitive challenges. Today, that view has changed. Companies that use innovative training and development practices are likely to report better financial performance than their competitors that do not. Training and development also help a company develop the human capital needed to meet competitive challenges. Many companies now recognize that learning through training, development, and knowledge management helps employees strengthen or increase their skills in order to improve or make new products, generate new and innovative ideas, and provide high- quality customer service. Also, development activities and career management are needed to prepare employees for managerial and leadership positions and to attract, motivate, and retain talented employees at all levels and in all jobs. An emphasis on learning through training, development, and knowledge management is no longer in the category of “nice to do”—they are a “must do” if companies want to gain a competitive advantage and meet employees’ expectations.

Businesses today must compete in the global marketplace, and the diversity of the workforce continues to increase. As a result, companies need to train employees to work with persons from different cultures, both within the United States and abroad. Tech- nologies, such as social media, and tablet computers, such as the iPad, reduce the costs associated with bringing employees to a central location for training. At the same time, the challenge is ensuring that these training methods include the necessary conditions (practice, feedback, self-pacing, etc.) for learning to occur. Through the blended learning approach, companies are seeking the best balance between private, self-paced, technology- based training (such as online learning), and methods that allow interpersonal interac- tion among trainees (such as classroom instruction or active learning). Employees from the millennial generation are well versed in informal learning, especially through col- laboration facilitated by social media such as Facebook and Twitter. Also, their gaming experiences lead them to expect that learning experiences will be fun, multidimensional, challenging, and provide immediate feedback and rewards.

The role of training has broadened beyond training program design. Effective instruc- tional design remains important, but training managers, human resource experts, and trainers are increasingly being asked to create systems to motivate employees to learn, not only in programs but informally on the job; create knowledge; and share that knowledge with other employees in the company. Training has moved from an emphasis on a one- time event to the creation of conditions for learning that can occur through collaboration, online learning, traditional classroom training, or a combination of these methods. There is increased recognition that learning occurs informally, outside the boundaries of a for- mal training course.

Also, the employee-employer relationship has changed. Due to rapidly changing busi- ness environments and competition that can quickly cause profits to shrink and skill needs to change, companies are reluctant to provide job security to employees. At the same time, many employees are job hopping to find more challenging and interesting work or to maximize the value that they can get for their skills in the job market, and not making

Preface

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Preface vii

a long-term commitment to any company. As a result, both employees and companies are concerned with developing future skills and managing careers. Companies want a work- force that is motivated and productive, has up-to-date skills, and can quickly learn new skills to meet changing customer and marketplace needs. Despite the prevalence of job hopping, companies want to provide a work environment and training and development opportunities that will them the employer of choice for talented employees. Employees want to develop skills that not only are useful for their current jobs, but also are congruent with their personal interests and values. Given the increasing time demands of work, employees are also interested in maintaining balance between work and non work interests.

The chapter coverage of Employee Training and Development reflects the traditional as well as the broadening role of training and development in organizations. Chapter One, “Introduction to Employee Training and Development,” covers the role of training and development in companies. Chapter Two, “Strategic Training,” discusses how training practices and the organization of the training function can support business goals. Because companies are interested in reducing costs, the amount of resources allocated to training is likely to be determined by the extent that training and development activities help the company reach business goals. Topics related to designing training programs are covered in Chapters Three through Six. Chapter Three, “Needs Assessment,” discusses how to identify when training is appropriate. Chapter Four, “Learning and Transfer of Training,” addresses the learning process and characteristics of a learning environment. The chapter also empha- sizes what should be done in the design of training and the work environment to ensure that training is used on the job. Chapter Five, “Program Design,” provides practical suggestions regarding what can be done to facilitate learning and transfer of training before, during, and after a course or program. The role of knowledge management in facilitating learning and transfer of training is also discussed. Chapter Six, “Training Evaluation,” discusses how to evaluate training programs. Here, the student is introduced to the concepts of identifying cost-effective training, evaluating the return on investment of training and learning, and determining if training outcomes related to learning, behavior, or performance have been reached. Chapters Seven and Eight cover training methods. Chapter Seven, “Traditional Training Methods,” discusses presentational methods (e.g., lecture), hands-on methods (e.g., on-the-job training and behavior modeling), and group methods (e.g., adventure learn- ing). Chapter Eight, “Technology-Based Training Methods,” introduces new technologies that are being used in training. These technology-based training methods include e-learning, mobile learning, social media, simulations, serious games, massive open online courses (MOOCs), virtual worlds, and blended learning. Chapters Seven and Eight both conclude by comparing training methods on the basis of costs, benefits, and learning characteristics.

Chapter Nine, “Employee Development and Career Management,” introduces devel- opmental methods (assessment, relationships, job experiences, and formal courses). In addition, the use of development plans to help employees succeed in their self-directed or protean careers is highlighted. Topics such as succession planning and on boarding are discussed. Chapter Ten, “Social Responsibility: Legal Issues, Managing Diversity, and Career Challenges,” emphasizes the role that training plays in helping companies improve the communities where they are located by increasing the skill level of the work- force, helping provide jobs, and taking actions to help all employees grow and develop, regardless of their personal characteristics or career challenges. The chapter also dis- cusses compliance with laws that affect training and development, training partnerships,

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viii Preface

managing diversity, cross-cultural preparation, and how companies can help employees deal with career challenges such as balancing work and life, coping with career breaks such as taking time off for family or required military service, job loss, and retirement. Finally, Chapter Eleven, “The Future of Training and Development,” looks at how train- ing and development might be different ten or twenty years from now.

Employee Training and Development is based on my more than twenty-five years of teaching training and development courses to both graduate and undergraduate students. From this experience, I have realized that managers, consultants, trainers, and faculty working in a variety of disciplines (including education, psychology, business, and indus- trial relations) have contributed to the research and practice of training and development. As a result, the book is based on research conducted in several disciplines, while offering a practical perspective. The book is appropriate for students in a number of programs. It suits both undergraduate and master’s-level training courses in a variety of disciplines.

DISTINCTIVE FEATURES This book has several distinctive features. First, my teaching experience has taught me that students become frustrated if they do not see research and theory in practice. As a result, one distinctive feature of the book is that each chapter begins with a real-life vignette of a company practice that relates to the material covered in the chapter. Many examples of company practices are provided throughout the chapters. Each chapter ends with a real- life case and related questions that give students the opportunity to apply the chapter’s content to an actual training or development issue.

A second distinctive feature of the book is its topical coverage. The chapters included in Part Two, “Designing Training,” relate to training design (needs assessment, train- ing methods, learning and transfer of training, and program design and evaluation). Instructional design is still the “meat and potatoes” of training. Part Three, “Training and Development Methods,” covers the more exciting part of training and development—that is, training and development methods. But as the role of managers and trainers broadens, they are increasingly involved in helping all employees grow, develop, and cope with career challenges, as well as preparing high-potential employees for leadership positions. For example, managers and trainers need to understand generational differences in em- ployees’ career needs, career paths, cross-cultural training, diversity, outplacement, and succession planning—topics that fall outside the realm of instructional design. These top- ics are covered in Part Four, “Social Responsibility and the Future.”

The book begins with a discussion of the context for training and development. Part One includes chapters that cover the economic and workplace factors that are influencing trends in the training profession. One of these trends is that companies are emphasizing learning through formal training and development, knowledge management, and informal learn- ing. In addition, these chapters discuss the need for training, development, and learning to become strategic (i.e., to contribute to business strategy and organizational goals). Why? In successful, effective training, all aspects of training—including training objectives, meth- ods, evaluation, and even who conducts the training—relate to the business strategy. More and more companies are demanding that the training function and training practices sup- port business goals; otherwise, training may be outsourced or face funding cuts. Although students in business schools are exposed to strategic thinking, students in psychology and

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Preface ix

education who go on to become trainers need to understand the strategic perspective and how it relates to the organization of the training function and the type of training conducted.

Not only has technology changed the way we live and the way work is performed, but it also has influenced training practice. As a result, one chapter of the book is devoted entirely to the use of technologies for training delivery and instruction, such as online learning, social media, mobile learning, gamification, and virtual worlds.

The book reflects the latest “hot topics” in the area of training and development. Some of the new topics discussed in the book are “flipped classroom,” adaptive training, big data and workforce analytics, learning management systems, competencies, knowledge management, massive open online courses (MOOCs), mobile learning (using smart- phones), reverse mentoring iPads and other tablet computers, social media such as blogs, wikis, and social networks, and virtual worlds (such as Second Life) for training. Each chapter contains the most recent academic research findings and company practices.

FEATURES DESIGNED TO AID LEARNING Employee Training and Development provides several features to aid learning:

1. Each chapter lists objectives that highlight what the student is expected to learn in that chapter. 2. In-text examples and chapter openers feature companies from all industries, including

service, manufacturing, retail, and nonprofit organizations. 3. Discussion questions at the end of each chapter help students learn the concepts pre-

sented in the chapter and understand potential applications of the material. 4. Important terms and concepts used in training and development are boldfaced in each

chapter. Key terms are identified at the end of each chapter. These key terms are im- portant to help the student understand the language of training.

5. Application assignments are useful for the students to put chapter content into practice. Most chapters include assignments that require the student to use the World Wide Web.

6. Cases at the end of each chapter and at the end of each of the four parts of the book help students apply what they have learned to training and development issues faced by actual companies.

7. Name and subject indexes at the end of the book help in finding key people and topics.

WHAT’S NEW IN THE SEVENTH EDITION I want to personally thank all of you who have adopted this book! Based on the comments of the reviewers of the fifth edition and training research and practice, I have made several improvements. Some important changes in the sixth edition of Employee Training and Development stand out:

best company practices. New examples have been added in each chapter’s text.

Chapter Eight highlights how Nissan is using e-learning that includes a virtual classroom, social collaboration, and virtual learning lab for skills practice to its geographically dispersed workforce.

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This edition offers new and expanded coverage of topics related to learning, program design, training methods, evaluation, development, and the future of training. From the learning and program design perspective expanded and new coverage is provided on the 70-20-10 learning model, adaptive training, the importance of stakeholder involvement in needs assessment and program design, the use of boosters, reflection, and discussion to enhance learning, how to design training from a project manage- ment perspective, and the use of incentives and badges to motivate and reinforce learning. The use of new and increasingly popular training delivery and instructional methods, including massive open online courses (MOOCs), the flipped classroom, serious games and gamification, and mobile learning, is discussed. From a develop- ment and career perspective, this edition provides new and expanded coverage of career paths that are more common today, including horizontal and cross-functional career paths, reverse mentoring, stretch assignments, and using succession planning to develop bench strength. In training evaluation, the fundamentals remain important but there is also an increased interest in and use of big data and workforce analytics to show how learning, training, and development contribute to talent management and the company’s “bottom line.” As a result, in the evaluation chapter we discuss big data and how companies are using it to answer important questions. Finally, new technologies have the potential to radically alter how and when we learn and substi- tute performance support for learning. As a result, in the last chapter of the book, we discuss the implications of wearables, artificial intelligence, Tin Can API, and neu- roscience research for the future of training and development. The implications of the needs and learning preferences of the multigenerational workforce, especially the millennials, for training and development are discussed throughout the book (e.g., reverse mentoring, increased use of games and social collaboration for learning). Each chapter ends with application assignments, including new program design and updated web-based exercises. These assignments are also found on the book’s website. Each chapter concludes with new or updated brief cases that illustrate a training, de- velopment, or learning issue faced by a company. The case questions ask students to consider issues and make recommendations based on the chapter content. To help students better understand the connections between topics, the book is or- ganized into four different parts. Part One focuses on the context for training and development and includes a chapter devoted to strategic training. Part Two includes coverage related to the fundamentals of designing training programs. Chapters in Part Two focus on needs assessment, learning theories and transfer of training, program design, and training evaluation. Part Three focuses on training and devel- opment methods and includes chapters devoted to traditional training methods, e- learning, and the use of new training technologies such as social media and mobile learning. The chapters in Part Four cover employee development and career manage- ment and the role of training and learning in helping companies increase their social responsibility. This includes following laws and regulations that relate to training, as well as managing diversity and helping employees cope with career challenges such as balancing work and life, career breaks, identifying and moving along a career path, preparing for retirement, and coping with job loss. Finally, this part provides a look at the future of training and development.

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INSTRUCTOR AND STUDENT RESOURCES

McGraw-Hill Connect®: connect.mheducation.com

Continually evolving, McGraw-Hill Connect® has been redesigned to provide the only true adaptive learning experience delivered within a simple and easy-to-navigate environ- ment, placing students at the very center.

Performance Analytics—Now available for both instructors and students, easy- to-decipher data illuminates course performance. Students always know how they’re doing in class, while instructors can view student and section performance at a glance. Mobile—Available on tablets, students can now access assignments, quizzes, and results on the go, while instructors can assess student and section performance anytime, anywhere. Personalized Learning—Squeezing the most out of study time, the adaptive engine within Connect creates a highly personalized learning path for each student by iden- tifying areas of weakness and providing learning resources to assist in the moment of need. This seamless integration of reading, practice, and assessment ensures that the focus is on the most important content for that individual.

LearnSmart®

LearnSmart, the most widely used adaptive learning resource, is proven to improve grades. By focusing each student on the most important information they need to learn, LearnSmart personalizes the learning experience so they can study as efficiently as possible.

SmartBook®

An extension of LearnSmart, SmartBook is an adaptive eBook that helps students focus their study time more effectively. As students read, SmartBook assesses comprehension and dynamically highlights where they need to study more.

Instructor Library The Connect Management Instructor Library is your repository for additional resources to improve student engagement in and out of class. You can select and use any asset that enhances your lecture.

The Connect Instructor Library includes:

Manager’s Hot Seat: Now instructors can put students in the hot seat with access to an interactive program. Students watch real managers apply their years of experience when confronting unscripted issues. As the scenario unfolds, questions about how the manager is handling the situation pop up, forcing the student to make decisions along with the manager. At the end of the scenario, students watch a post-interview with the manager, view how their responses matched up to the manager’s decisions. The Manager’s Hot Seat videos are now available as assignments in Connect.

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The author is only one of many important people involved in writing a textbook. The sev- enth edition of this book would not have been possible without the energy and expertise of several others from McGraw-Hill Education and Editors Inc. Diana Murphy, developmen- tal editor, and project managers Jessica Portz and Gunjan Chandola deserve my gratitude and thanks for their patience and expertise in following the insertions and changes I made, and for ensuring that my ideas made sense and my writing was clear, concise, and easy to understand.

I take full responsibility for any errors, omissions, or misstatements of fact in this book. However, regardless of your impression of the book, it would not have been this good had it not been for the manuscript reviewers. Special thanks to these people, who provided me with detailed comments that helped improve the seventh edition of the book for students and instructors. These reviewers include

Acknowledgments

Rebecca Bryant Texas Woman’s University Denton Campus

Edward Steve Eidson Albany Technical College

John R. Knue Baylor University

Liliana Meneses University of Maryland University College

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Raymond A. Noe The Ohio State University Raymond A. Noe is the Robert and Anne Hoyt Designated Professor of Management at The Ohio State University. He has taught for more than twenty-five years at Big Ten universities. Before joining the faculty at Ohio State, he was a professor in the Depart- ment of Management at Michigan State University and the Industrial Relations Center of the Carlson School of Management, University of Minnesota. He received a B.S. in psychology from The Ohio State University and M.A. and Ph.D. degrees in psychology from Michigan State University. Professor Noe conducts research and teaches all levels of students—from undergraduates to executives—in human resource management, train- ing and development, performance management, and talent management. He has pub- lished articles in the Academy of Management Annals, Academy of Management Journal, Academy of Management Review, Human Resource Development Quarterly, Journal of Applied Psychology, Journal of Management, Journal of Occupational and Organizational Psychology, Journal of Vocational Behavior, and Personnel Psychology. Professor Noe is currently on the editorial boards of several journals, including Journal of Applied Psychology, Personnel Psychology, and Journal of Management. He is the lead author of “Learning in the 21st century workplace” recently published in the Annual Review of Organizational Psychology and Organizational Behavior. Besides Employee Training and Development, he has co-authored two other textbooks: Fundamentals of Human Resource Management and Human Resource Management: Gaining a Competitive Advantage, both published by McGraw-Hill/Irwin. Professor Noe has received awards for his teaching and research excellence, including the Herbert G. Heneman Distinguished Teaching Award, the Ernest J. McCormick Award for Distinguished Early Career Contribution from the Society for Industrial and Organizational Psychology, and the ASTD Outstanding Research Article of the Year Award. He is also a fellow of the Society of Industrial and Organizational Psychology.

About the Author

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PART ONE The Context for Training and Development 3

1 Introduction to Employee Training and Development 4

2 Strategic Training 61

PART TWO Designing Training 115

3 Needs Assessment 116

4 Learning and Transfer of Training 157

5 Program Design 201

6 Training Evaluation 246

PART THREE Training and Development Methods 291

7 Traditional Training Methods 292

8 Technology-Based Training Methods 331

9 Employee Development and Career Management 383

PART FOUR Social Responsibility and the Future 441

10 Social Responsibility: Legal Issues, Managing Diversity, and Career Challenges 442

11 The Future of Training and Development 491

GLOSSARY 514

NAME INDEX 527

COMPANY INDEX 537

SUBJECT INDEX 541

Brief Contents

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Preface vi

PART ONE THE CONTEXT FOR TRAINING AND DEVELOPMENT 3

Chapter 1 Introduction to Employee Training and Development 4

Introduction 6 Training and Development: Key Components of Learning 7 Designing Effective Training 10

Overcoming the Flaws of the ISD Model 12 The Forces Influencing Working and Learning 13

Economic Cycles 14 Globalization 15 Increased Value Placed on Intangible Assets and Human Capital 17 Focus on Links to Business Strategy 22 Changing Demographics and Diversity of the Workforce 22 Generational Differences 23 Talent Management 26 Customer Service and Quality Emphasis 31 New Technology 35 High-Performance Models of Work Systems 38

Snapshot of Training Practices 40 Training Facts and Figures 40 Training Investment Leaders 42 Roles, Competencies, and Positions of Training Professionals 44 Who Provides Training? 46 Who Is in Charge of Training? 46 Preparing to Work in Training 49

Key Terms 50 Discussion Question 51 Application Assignments 52