Training at keller globe case study

Training and Development

Chapter Objectives

After completing this chapter, students should be able to:

1. Define training and development.

2. Explain factors influencing T&D.

3. Describe the T&D process.

4. Describe the various T&D methods.

5. Describe training and development delivery systems.

6. Describe management development, mentoring, and coaching.

7. Define orientation and describe the executive orientation concept of onboarding.

8. Identify special training areas.

9. Explain the metrics for evaluating training and development.

10. Describe the Workforce Investment Act.

11. Define organization development (OD) and describe various OD techniques.

HRM in Action: Job Security versus Career Security

In an article in Time magazine entitled “What Will Be the 10 Hottest Jobs? . . . and What Jobs Will Disappear?” the primary jobs identified for extinction included stockbrokers, auto dealers, mail carriers, and insurance and real estate agents. The reason given for the predicted demise of these jobs was that the Internet would eliminate positions in the middle. Other predictions for ultimate career demise included: telephone repair people (wireless technology will take over), computer data entry personnel (voice recognition technology and scanning devices will eliminate the manual effort), and library researchers. 1 The researcher of yesterday pulled journals and books from the shelves, copied pertinent pages, and turned them over to the investigator. Today, the investigator can sit at his or her computer at home and access libraries through the Internet. Automation will also affect the types of jobs needed. Grocery stores will not need as many cashiers, because checkout stands are being automated. FedEx and UPS will not need as many workers, because machines will do more sorting. Not as many loaders will be needed because machines will determine which packages belong on which trucks.

In the above examples, these jobs now identified for extinction were historically very secure careers. In the past, most people remained with one company and career for the majority of their adult years. The term job security implies security in one job, often with one company. Historically, this type of security depended upon an employee doing a good job and keeping out of trouble. 2 , 3 But, for most workers today, this assumption is not valid. As one HR executive stated, “Job security has really become an aberration. No employer can guarantee job security for you. If you depend on things always being the way they are, that’s risky business. You don’t know what’s going to happen.” 4 The old social contract between employers and employees no longer exists. 5 The country has become a free-agent nation, in which employees are no more loyal to companies than companies are to employees. 6 Downsizing, reorganization, refocusing business strategies, and of course, executive betrayal in such companies as Enron, WorldCom, and Arthur Andersen changed all the old rules. 7 The decision to leave or stay is based not only on an employee’s career prospects in the present company, but also on how it might prepare him or her to move on elsewhere. 8 Therefore, the way people approached their careers in the past is history. As John A. Challenger, CEO of global outplacement firm Challenger, Gray & Christmas, said, “The truth is: there are no permanent jobs. Lifetime jobs do not exist. All jobs, in some sense, are temporary and many workers operate as if they could lose their job tomorrow.” 9

Career security is distinctly different from job security; it requires developing marketable skills and expertise that help ensure employment within a range of careers. Career security results from the ability to perform within a broad range of careers well enough to be marketable in more than one job and to more than one organization. Career security is different from job security in that job security implies security in one job, often with one company. With career security, workers are offered opportunities to improve their skills, and thus their employability in an ever-changing work environment. Under this so-called employability doctrine, employees owe the company their commitment while employed and the company owes its workers the opportunity to learn new skills, but that is as far as the commitment goes. Under the employability doctrine, loyalty in either direction is not expected.

The first portion of this chapter is devoted to making a distinction between job and career security. Next, strategic training and development and the factors influencing T&D will be explained. Following this, we examine the T&D process and how training and development needs are determined and objectives established. Then, the numerous T&D methods are discussed and training and development delivery systems are described. Management development, orientation, and the executive orientation concept of onboarding are then discussed. Special training areas are identified, and the means by which T&D programs are implemented are then explained, followed by a discussion of the metrics for evaluating training and development. After that, the Workforce Investment Act is explained, organization development is described and the chapter concludes with a Global Perspective entitled “Learning the Culture of China.”

Strategic Training and Development

1 Objective

1. Define training and development.

Training and development (T&D) is the heart of a continuous effort designed to improve employee competency and organizational performance. Training provides learners with the knowledge and skills needed for their present jobs. Showing a worker how to operate a lathe or a supervisor how to schedule daily production are examples of training. On the other hand,development involves learning that goes beyond today’s job and has a more long-term focus. It prepares employees to keep pace with the organization as it changes and grows. T&D activities have the potential to align a firm’s employees with its corporate strategies. Some possible strategic benefits of T&D include employee satisfaction, improved morale, higher retention, lower turnover, improved hiring, a better bottom line, and the fact that satisfied employees produce satisfied customers. 10

In virtually every market, customers are demanding higher quality, lower costs, and faster cycle times. To meet these requirements, firms must continually improve their overall performance. Rapid advances in technology and improved processes have been important factors in helping businesses meet this challenge. However, the most important strategic competitive advantage for any firm is its workforce, one that must remain competent through continuous workforce development efforts. Organizations spend over $50 billion every year on formal T&D programs. 11 Recently, the average annual expenditure per employee for training rose to $955 but averaged $1,368 per employee in large organizations. 12 To many, this may seem like a tremendous amount of money. However, successful organizations realize that well-structured and significant employee T&D programs correlate strongly with long-term strategic success.

Improved performance, the bottom-line purpose of T&D, is a strategic goal for organizations. 13 Toward this end, many firms have become or are striving to become learning organizations. A learning organization is a firm that recognizes the critical importance of continuous performance-related T&D and takes appropriate action.

A learning management system moves beyond delivering tactical training projects to initiating learning programs aligned to strategic corporate goals. 14 Once undervalued in the corporate world, training programs are now credited with strengthening customer satisfaction, contributing to partnership development, enhancing research and development activities and, finally, reinforcing the bottom line. Being recognized as a company that encourages its employees to continue to grow and learn can be a major plus in recruiting. 15 In a learning organization workers are rewarded for learning and are provided enriched jobs, promotions, and compensation. 16 Organizations with a reputation of being a learning leader tend to attract more and better-qualified employees. 17

In a recent study of training professionals, approximately 80 percent responded that they plan to expand their training and development efforts to meet expected company growth. 18 What accounts for the increased interest? In its annual coverage of the “100 Best Companies to Work for in America,” each of the top 10 on the list was rated highest in the areas of learning and growth opportunities. 19 On nearly every survey, training ranks in the top three benefits that employees want from their employers and they search for firms that will give them the tools to advance in their profession. Remember the discussion at the beginning of this chapter, when it was stated that “With career security, workers are offered opportunities to improve their skills, and thus their employability in an ever-changing work environment.” It is clear that T&D is not merely a nice thing to provide. It is a strategic resource; one that firms must tap to energize their organizations in the twenty-first century.

HR Web Wisdom: American Society for Training and Development

http://www.astd.org

The homepage for the American Society for Training and Development is presented. Visit the Press Room to get current information on training and development topics.

Factors Influencing Training and Development

2 Objective

1. Explain factors influencing T&D.

There are numerous factors that both impact and are impacted by T&D. These issues are discussed next.

Top Management Support

For T&D programs to be successful, leadership support at the top is required. Henry Goldman, managing director of the Goldman-Nelson Group in Huntington Beach, California, can attest to this. His boss, the CEO of Goldman-Nelson, was adamant that the firm’s 24 vice presidents understand a new initiative. Goldman asked him to give a short speech at an introductory session so attendees would know that the new program was important to the chief executive. On the day of the program launch, however, the CEO did not show up to give the presentation. The message to the vice presidents was clear; the CEO did not think the change was important enough for him to become an active participant. The result: the change never got off the ground. 20 Without top management support, a T&D program will not succeed. The most effective way to achieve success is for executives to take an active part in the training and provide the needed resources.

Commitment from Specialists and Generalists

In addition to top management, all managers, whether they are specialists or generalists, should be committed to and involved in the T&D process. The primary responsibility for training and development lies with line managers, from the president and chairman of the board on down. T&D professionals merely provide the technical expertise.

Technological Advances

Perhaps no factor has influenced T&D more than technology. The computer and the Internet, in particular, are dramatically affecting the conduct of all business functions. As emphasized throughout this chapter, technology has played a huge role in changing the way knowledge is delivered to employees, and this change is constantly being extended.

Organization Complexity

Flatter organization structures resulting from fewer managerial levels give the appearance of a simpler arrangement of people and tasks. This, however, is not the case. The tasks of individuals and teams are now both enlarged and enriched. The result is that American workers are spending more time on the job and performing more complex tasks than ever before. Also, the interactions between individuals and groups have become more complicated. The traditional chain of command, which provided a sense of stability at the expense of efficiency, is outdated in many modern organizations.

Ethical Dilemma: Tough Side of Technology

You are the human resource director for a large manufacturing firm that is undergoing major changes. Your firm is in the process of building two technologically advanced plants. When these are completed, the company will close four of its five old plants. It is your job to determine who will stay with the old plant and who will be retrained for the newer plants.

One old-plant employee is a 56-year-old production worker who has been with your firm for 10 years. He seems to be a close personal friend of your boss, as they are often seen together socially. However, in your opinion, he is not capable of handling the high-tech work required at the new plants, even with additional training. He is not old enough to receive any retirement benefits and there are other qualified workers with more seniority who want to remain at the old plant.

What would you do?

In recent years, the increasingly rapid changes in technology, products, systems, and methods have had a significant impact on job requirements. Thus, successful employees constantly upgrade their skills and develop an attitude that permits them not only to adapt to change, but also to accept and even seek it. Many organizations have changed dramatically as a result of downsizing, technological innovations, and customer demands for new and better products and services. The outcome is often that fewer people must accomplish more work at a more complex level. Supervisors and employees performing in self-directed teams are taking up much of the slack from dwindling middle-management ranks. All these changes translate into a greater need for T&D.

Learning Styles

Although much remains unknown about the learning process, some generalizations stemming from the behavioral sciences have affected the way firms conduct training. Some examples follow:

· Learners progress in an area of learning only as far as they need to in order to achieve their purposes. Research indicates that unless there is relevance, meaning, and emotion attached to the material taught, the learner will not learn.

· The best time to learn is when the learning can be useful. Global competition has dramatically increased the need for efficiency. One way this impacts T&D is the need for training on a timely basis. Just-in-time training is training provided anytime, anywhere in the world when it is needed. 21

· Depending on the type of training, it may be wise to space out the training sessions.

Computer technology, the Internet, and intranets have made these approaches economically feasible to a degree never before possible. The ability to deliver knowledge to employees on an as-needed basis, anywhere on the globe, and at a pace consistent with their learning styles, greatly enhances the value of T&D.

Research on student learning styles indicates that most college students have a practical orientation to learning, with a preference for concrete learning activities, rather than a theoretical orientation toward learning that is abstract. Active modes of teaching and learning appear to be more effective than the passive modes of learning most familiar to many instructors and students. Active learning is based on the assumption that students learn best by doing. Active learning situations provide students with the opportunity not only to apply and practice what they have learned, but also to see the results of their practice, determine if they really understood what they did, and gain insight for subsequent application.

Steven Covey, author of The Seven Habits of Highly Effective People, suggests that organizations create a culture where every learner becomes a teacher and every teacher becomes a learner. The firm supplies not only individual knowledge but also creates institutional knowledge so that when an employee leaves the organization, another individual in the company possesses the same knowledge. 22

Other Human Resource Functions

Successful accomplishment of other human resource functions can also have a crucial impact on T&D. For instance, if recruitment and selection efforts attract only marginally qualified workers, a firm will need extensive T&D programs. A firm’s compensation package may also influence T&D efforts. Organizations with competitive pay systems or progressive health and safety programs will find it easier to attract workers who are capable of hitting the ground running, and to retain employees who require less training.

Training and Development Process

3 Objective

1. Describe the T&D process.

Major adjustments in the external and internal environments necessitate corporate change. You can see the general T&D process that anticipates or responds to change in Figure 7-1. First, an organization must determine its specific training needs. Then specific objectives need to be established. The objectives might be quite narrow if limited to the supervisory ability of a manager, or they might be broad enough to include improving the management skills of all first-line supervisors. In exemplary organizations, there is a close link between the firm’s strategic mission and the objectives of the T&D program. Review and periodic updating of these objectives is necessary to ensure that they support the changing strategic needs of the organization. After setting the T&D objectives, management can determine the appropriate methods and the delivery system to be used. Naturally, management must continuously evaluate T&D to ensure its value in achieving organizational objectives.

Figure 7-1 Training and Development Process

https://portal.phoenix.edu/content/ebooks/9780132225953-human-resource-management-tenth-edition/jcr:content/images/fg07_001_0132225956.gif

Determine Specific Training and Development Needs

The first step in the T&D process is to determine specific T&D needs. In today’s highly competitive business environment, undertaking a program because other firms are doing it is asking for trouble. A systematic approach to addressing bona fide needs must be undertaken.

Training and development needs may be determined by conducting analyses on several levels.

· Organizational analysis: From an overall organizational perspective, the firm’s strategic mission, goals, and corporate plans are studied, along with the results of human resource planning.

· Task analysis: The next level of analysis focuses on the tasks required to achieve the firm’s purposes. Job descriptions are important data sources for this analysis level.

· Person analysis: Determining individual training needs is the final level. The relevant questions are, “Who needs to be trained?” and “What kind of knowledge, skills, and abilities (KSAs) do employees need?” Performance appraisals and interviews or surveys of supervisors and job incumbents are helpful at this level.

Sky Foster, manager for training and associate development for South Carolina–based BMW, states, “We are now training for need, as opposed to rolling out a number of courses. First, it was a check-off list for many of the courses, but now they have more impact and meaning. We specifically ask, ‘What knowledge do you want your people to have? What skills do they need? What do they need to do differently from what they’re doing today?’ We ask more pointed questions and find out exactly what job knowledge and skills the person must have to perform.” 23

Establish Specific Training and Development Objectives

T&D must have clear and concise objectives and be developed to achieve organizational goals. 24 Without them, designing meaningful T&D programs would not be possible. Worthwhile evaluation of a program’s effectiveness would also be difficult at best. Consider these purposes and objectives for a training program involving employment compliance:

Training Area: Employment Compliance

Purpose: To provide the supervisor with

1. Knowledge and value of consistent human resource practices

2. The intent of EEO legal requirements

3. The skills to apply them

Objectives: To be able to

1. Cite the supervisory areas affected by employment laws on discrimination

2. Identify acceptable and unacceptable actions

3. State how to get help on equal employment opportunity matters

4. Describe why we have discipline, disciplinary action, and grievance procedures

5. Describe our disciplinary action and grievance procedures, including who is covered

As you see, the purpose is established first. The specific learning objectives that follow leave little doubt about what the training should accomplish. With these objectives, managers can determine whether training has been effective. For instance, in the example above, a trainee either can or cannot state how to get help on equal employment opportunity matters.

Training and Development Methods

4 Objective

1. Describe the various T&D methods.

When a person is working in a garden, some tools are more helpful in performing certain tasks than others. The same logic applies when considering various T&D methods. In some cases, it is not feasible to learn while performing a job at the same time. Although an increasing amount of T&D takes place on the job at the time the employee needs the training, many programs occur away from the work setting. Regardless of whether programs are in-house or outsourced, firms utilize a number of methods for imparting knowledge and skills to the workforce and usually more than one method, called blended training, is used to deliver T&D. 25 These T&D methods are discussed next.

Instructor-Led

The instructor-led method continues to be effective for many types of T&D. One advantage of instructor-led T&D is that the instructor may convey a great deal of information in a relatively short time. The effectiveness of instructor-led programs improves when groups are small enough to permit discussion, and when the instructor is able to capture the imagination of the class and utilize multimedia in an appropriate manner. Also, the charisma or personality that the instructor brings to class may excite the students to want to learn.

Trends & Innovations: Virtual Instructor-Led

Traditionally, instructors physically lectured in front of a real student body. Now instructors can deliver their lectures virtually. As before, the instructor is still in charge of the class but he or she is not physically standing in front of students. The instructor still lectures but in a different format. Students can do practically anything they could do in a traditional classroom. They can share a whiteboard, communicate as individuals and groups, view video material, and so forth. Students do not have to wait for a professor’s office hours since an e-mail may be sent anytime. The largest software provider of virtual instructor-led delivery systems is Blackboard. The Blackboard Learning System is a software application for delivering education online and has powerful capabilities for managing courses and tailoring instruction to enhance student outcomes. It enables instructors to use the full power of the Internet with access to any learning resource at any time from any place. Blackboard has licensed over 1,000 enterprise editions of the Blackboard Learning System. 26

Your author appreciated firsthand the power of the virtual instructor-led method when his university took a direct hit from Hurricane Rita in 2005. Under the mandatory evacuation order, students and faculty scattered in every direction, going to different states and countries. A few days after the hurricane struck, it was evident that the brick-and-mortar university would be out of service for some time. When your author evacuated to Fort Worth, Texas, he went to Blackboard and e-mailed all his students asking them to reply if they received his e-mail. Luckily, the server had been transferred to another school in the state and Blackboard could still be used by students. Surprisingly, most responded, some from their homes in New York, Mexico, Asia, and the Philippines.

Prior to the hurricane, students had been assigned a term paper which required library research using EBSCOhost, a business research database. They were encouraged to begin their research and to communicate often with their instructor. From Fort Worth, there began a steady flow of communication between instructor and students. Students would attach a rough draft of their research paper for the instructor to review. After review, the papers were returned in the same manner. Lectures were placed on Blackboard for students to read. Apparently other instructors were also using Blackboard to keep in touch with students. The semester was ultimately completed, although weeks later than normal, but only 8 percent of the entire student population failed to complete the semester.

Case Study

The case study is a T&D method in which trainees study the information provided in the case and make decisions based on it.

If an actual company is involved, the student would be expected to research the firm to gain a better appreciation of its financial condition and environment. Research on companies has been significantly enhanced through the availability of library databases such as EBSCOhost. Often, the case study method occurs in the classroom with an instructor who serves as a facilitator.

Behavior Modeling

Behavior modeling is a T&D method that permits a person to learn by copying or replicating behaviors of others to show managers how to handle various situations. Behavior modeling has been used to train supervisors in such tasks as conducting performance appraisal reviews, correcting unacceptable performance, delegating work, improving safety habits, handling discrimination complaints, overcoming resistance to change, orienting new employees, and mediating individuals or groups in conflict.

Role-Playing

Role-playing is a T&D method where participants are required to respond to specific problems they may encounter in their jobs by acting out real-world situations. Rather than hearing an instructor talk about how to handle a problem or discussing it, they learn by doing. Role-playing is often used to teach such skills as disciplinary action, interviewing, grievance handling, conducting performance appraisal reviews, team problem solving, effective communication, and leadership style analysis. It has also been used successfully to teach workers how to deal with individuals who are angry, irate, or out of control. 27 Some restaurant chains use role-playing to train servers how to deal with difficult situations such as a couple having an argument at the dining table. 28

Role-playing may also serve to train managers. Consider this scenario:

“Be in the boardroom in 10 minutes,” reads the e-mail from Senior Vice President Alan Young. The CEO is out on his boat, and a storm has knocked out all communications. Worse, there has been a massive fire in the call center in South America. “We could lose billions,” Young says. The board has given senior staff emergency powers. You’re a top manager who has been called in to help. What do you do? 29

In the episode above, this is the final setting in a new computer-based role-playing exercise called Virtual Leader.

Business Games

Business games is a T&D method that permits participants to assume roles such as president, controller, or marketing vice president of two or more similar hypothetical organizations and compete against each other by manipulating selected factors in a particular business situation. Participants make decisions affecting price levels, production volumes, and inventory levels. Typically, a computer program manipulates their decisions, with the results simulating those of an actual business situation. Participants are able to see how their decisions affect other groups and vice versa. The best thing about this type of learning is that if a poor decision costs the company $1 million, no one gets fired, yet the business lesson is learned.

In-Basket Training

In-basket training is a T&D method in which the participant is asked to establish priorities for and then handle a number of business papers, e-mail messages, memoranda, reports, and telephone messages that would typically cross a manager’s desk. The messages, presented in no particular order, call for anything from urgent action to routine handling. The participant is required to act on the information contained in these messages. In this method, the trainee assigns a priority to each particular situation before making any decisions. This form of training has been quite accurate in predicting performance success in management jobs. 30 Assessment centers, discussed in Chapter 6, commonly make use of this training method in the selection process.

On-the-Job Training

The next four T&D methods involve learning by actually doing work-related tasks. On-the-job-training (OJT) is an informal T&D method that permits an employee to learn job tasks by actually performing them. The key to this training is to transfer knowledge from a highly skilled and experienced worker to a new employee, while maintaining the productivity of both workers. 31 Individuals may also be more highly motivated to learn because it is clear to them that they are acquiring the knowledge needed to perform their jobs. At times, however, the trainee may feel so much pressure to produce that learning is negatively affected. Firms should be selective about who provides on-the-job training. The trainers are often supervisors. However, peer-to-peer communication can provide a very powerful means for training. Regardless of who does the training, that person must have a good work ethic and correctly model the desired behavior.

Job Rotation

Job rotation (sometimes called cross-training) is a T&D method where employees move from one job to another to broaden their experience. Higher-level tasks often require this breadth of knowledge. Rotational training programs help employees understand a variety of jobs and their interrelationships, thereby improving productivity. Job rotation is often used by organizations to encourage effective teamwork. 32 Organizations are widely applying entry-level rotational training programs. For instance, a college graduate may be given the opportunity to test his or her skills in a number of different roles such as finance, sales, and supply-chain management, before settling on a full-time management role within the company. Streamlined firms have to do more with less so it makes sense to develop employees who can jump in anywhere they are needed.

Internships

As mentioned in Chapter 5, an internship program is a recruitment method typically involving students in higher education who divide their time between attending classes and working for an organization. Internships as a T&D method allow participants to integrate theory learned in the classroom with business practices. In a recent WetFeet survey, 79 percent felt a good internship was essential to meeting their long-term career goals. 33 As evidence of their current popularity, three out of four students now complete internships before graduation; up from one in 36 in 1980. 34 A study by the National Association of Colleges and Employers found that employers offered higher starting salaries to graduates with internship experience. 35

Apprenticeship Training

Apprenticeship training is a training method that combines classroom instruction with on-the-job training. Such training is common with craft jobs, such as those of plumber, barber, carpenter, machinist, and printer. While in training, the employee earns less than the master craftsperson who is the instructor. Apprenticeship programs last from two to five years, with four years being the average length.

The days of narrow training just for job skills are past for some crafts. In today’s workplace, communication and interpersonal relationships are essential. For example, a Pennsylvania apprenticeship program now requires electrician hopefuls to earn an associate’s degree in order to graduate. The program requires academic courses right alongside electrical wiring in a mix of traditional vocational-technical training. 36

Training and Development Delivery Systems

5 Objective

1. Describe training and development delivery systems.

The section above focused on the various T&D methods available to organizations; and, the list is constantly changing. In this section, our attention is devoted to how the training will be delivered to participants.

Corporate Universities

A T&D delivery system provided under the umbrella of the organization is referred to as a corporate university. The corporate T&D institution differs from many traditional education programs in that its focus is on creating organizational change that involves such areas as company training, employee development, and adult learning. 37 It is proactive and strategic rather than reactive and tactical and can be closely aligned to corporate goals. 38 An estimated 2,000 corporate universities exist in the United States today. 39 This number includes many Fortune 500 companies. If this growth rate continues, the roughly 3,700 traditional universities will someday be outnumbered. The best-known corporate universities include those at General Motors, McDonald’s, Disney, Motorola, GE, and Intel. Intel University in Arizona administers programs developed by 73 training groups located worldwide. Intel offers technology courses ranging from using Microsoft Word to training in lithography, one of the stages of computer-chip manufacturing. The university also teaches nontechnical skills such as dealing with conflict and harassment avoidance.

Growth in the number of corporate universities may be attributed to their flexibility, which permits students to learn on their own time, and the use of various modes including DVDs, audio- and videotapes, and, of course, the Internet. Also, firms are better able to control the quality of training and to ensure that their employees receive the same messages. The remarkable growth rate of corporate universities clearly illustrates that they have something going for them.

Colleges and Universities

For decades, colleges and universities have been the primary delivery system for training professional, technical, and management employees. Many public and private colleges and universities are taking similar approaches to training and education as have the corporate universities. Corporate T&D programs often partner with colleges and universities or other organizations, such as the American Management Association, to deliver both training and development.

Community Colleges

Community colleges are publicly funded higher education establishments that deliver vocational training and associate degree programs. Some employers have discovered that community colleges can provide certain types of training better and more costeffectively than they can.

In a report entitled “The Knowledge Net,” the American Association of Community Colleges (AACC) argued that community colleges should increase their collaborations with business, industry, and other educational entities as a primary strategy to develop a higher-quality, better-prepared workforce. 40 Apparently, many organizations agree. Rapid technological changes and corporate restructuring have created a new demand by industry for community college training resources. Here are some examples:

· In Phoenix, PepsiCo Inc., has established its own training program with community college help. Its Gatorade factory in suburban Tolleson and a neighboring container manufacturer host an electricity-theory class taught by Maricopa Community College faculty. 41

· In Cedar Rapids, Iowa, Kirkwood Community College is part of a development consortium known as the Workplace Learning Connection that helps 700 local firms recruit and train workers. 42

· Connecticut Community Colleges include as clients some of our nation’s most prestigious firms: Cigna, Clairol, Eli Lilly, Frito Lay Inc., General Electric, International Paper, Pitney Bowes, Pratt & Whitney, The Travelers, and United Technologies, to name a few. 43

The federal government has joined industry in an increased interest in community college involvement in educating the national labor force. The Workforce Investment Act (WIA), discussed later in this chapter, dramatically altered the federal system of job training and workforce development. This huge and comprehensive federal law assures the participation of community colleges, as they are a critical factor in the success of this legislation.

Online Higher Education

In recent years, there has been an increase in the use of online higher education as a means of delivering T&D. Online higher education is defined as educational opportunities including degree and training programs that are delivered, either entirely or partially, via the Internet. 44 One reason for the growth of online higher education is that it allows employees to attend class at lunchtime, during the day, or in the evening. It also saves employees time since it reduces their need to commute to school. It increases the range of learning opportunities for employees and increases employee satisfaction. According to a recent ASTD survey, approximately 29 percent of corporate tuition reimbursements now go to online or blended programs. 45 Enrollment in online universities continues to grow. The University of Phoenix has over 80,000 degree-seeking undergraduate students. 46 It even has 18,800 online MBA students. General Motors pays for its employees to earn an MBA through an Internet-based school launched two years ago by the New York Institute of Technology and Cardean University. Schools such as Indiana University and Arizona State University have also entered the online MBA market. 47

Videoconferencing

For a number of years, many firms in the United States have used videoconferencing and satellite classrooms for delivering T&D and the technology is rapidly improving. 48 The approach is interactive and appears to offer the flexibility and spontaneity of a traditional classroom. A great deal of T&D takes place using this technology, offering the prospect of increasing the number of trainees and at the same time saving companies money. Global firms, in particular, can benefit from this technology. With far-flung operations, videoconferencing cuts the cost of travel. 49 Potential terrorist attacks also make this approach more appealing. Videoconferencing and similar technology can increase access to training, ensure consistency of instruction, and reduce the cost of delivering T&D programs. There is seemingly no limit to its possibility.

Vestibule System

Vestibule system is a T&D delivery system that takes place away from the production area on equipment that closely resembles equipment actually used on the job. For example, a group of lathes may be located in a training center where the trainees receive instruction in their use. A primary advantage of the vestibule system is that it removes the employee from the pressure of having to produce while learning. The emphasis is focused on learning the skills required by the job.

Video Media

The use of video media such as DVDs, videotapes, and film clips continues to be popular T&D delivery systems. The media are especially appealing to small businesses that cannot afford more expensive training methods. In addition, they provide the flexibility desired by any firm. Behavior modeling, previously mentioned, has long been a successful training method that utilizes video media.

E-Learning

E-learning is the T&D delivery system for online instruction. It takes advantage of the speed, memory, and data manipulation capabilities of the computer for greater flexibility of instruction. A basic benefit is that it is self-paced and individualized and can be done while at work or off-shift. 50 The concept can be repeated as often as needed. Help screens can also be included in the program to give additional explanation for those who need it. In a computer lab, participants can be working on different parts of a program, at varying speeds and in different languages. E-learning systems may also utilize multimedia to enhance learning with audio, animation, graphics, and interactive video.

By 2008, the e-learning market should more than double, rising to $13.5 billion in the United States and $21 billion globally, according to International Data Group Inc. 51 The versatility of online learning has important implications for T&D since the demand for an educated and empowered workforce is critical in the economy. The advantages of using e-learning are numerous: it is available anytime, anywhere in the world, and in different languages. However, the biggest advantage is cost savings. According to Paul Walliker, Caterpillar Inc.’s collaboration and online training manager, “To create an e-learning module is three times less expensive than it is to create an instructor-led class.” 52

Individuals involved in e-learning are no longer constrained by the need to be in a classroom at a specific location and time. Animation, video, and multimedia make presentations vivid and appealing. E-learning is also considered the most effective way to control training costs. 53 For example, IBM found that using such technology has enabled the company to trim the cost of training by $400 million a year. Companies are treating e-learning strategically, with greater attention to ROI and more awareness of how to use online training. 54 Also, e-learning and classroom learning were found to be equally effective. 55

For Union Pacific, the largest railroad in North America, both distance and time have been hurdles to learning. About 19,000 of its 48,000 widely disbursed employees work on the railroad’s locomotives and freight cars, many on different schedules. So the company uses a blend of traditional learning and e-learning that provides the kind of training far-flung employees require, at a time when they can use it. 56

Firms that consistently have a high turnover rate are turning to e-learning because classroom learning is not cost-effective. Nike faced a challenge that a number of retailers today are confronting. Nike designed an online training program that the company could offer to employees in its own stores as well as at other retailers that sell Nike products. The program conveys a lot of information quickly, but it is also easy to learn. This is important because the training is directed at 16- to 22-year-olds. The concept of Sports Knowledge Underground (SKU) was developed. The layout for SKU resembles a subway map, with different stations representing different training themes. For example, Apparel Union Station branches off into the apparel technologies line, the running products line, and the Nike Pro products line. The Cleated Footwear Station offers paths to football, whereas the Central Station offers such broad lines as customer skills. Each segment is three to seven minutes long and gives associates the basic knowledge they need about various products. The program is presently reaching approximately 20,000 associates. 57

Virtual reality is a unique extension of e-learning that permits trainees to view objects from a perspective otherwise impractical or impossible. For example, it is not feasible to turn a drill press on its side so a trainee can inspect it from the bottom. A computer easily permits this type of manipulation.

Simulators

Simulators are T&D delivery system comprised of devices or programs that replicate actual job demands. The devices range from simple paper mock-ups of mechanical devices to computerized simulations of total environments. Training and development specialists may use simulated sales counters, automobiles, and airplanes. Although simulator training may be less valuable than on-the-job training for some purposes, it has certain advantages. A prime example is the training of airline pilots in a simulator; simulated crashes do not cost lives or deplete the firm’s fleet of jets.

Automobile mechanics are using the same type of simulation training that was developed to help U.S. Air Force technicians fix jet fighters. An auto technician can take the program wherever the technician has access to a personal computer with an Internet connection. General Motors recognized that a different approach would be needed to train service technicians following the explosion of technology in its vehicles. It felt that if Raytheon could help technicians fix B-2 Stealth bombers and F-15 jet fighters, it was qualified to help mechanics repair cars. “During each simulation, the technician receives a work order to complete. He or she must select the appropriate tools to diagnose the problem and make the repair. A virtual instructor appears at several points to inform, challenge and help technicians discover the concern, much like an instructor would in one of GM’s training centers.” 58

Management Development

6 Objective

1. Describe management development, mentoring, and coaching.

Management development consists of all learning experiences provided by an organization resulting in upgrading skills and knowledge required in current and future managerial positions. Although leadership is often depicted as an exciting and glamorous endeavor, there is another side; failure can quickly result in losing one’s position. The risks are especially high due to today’s rapid changes. This situation magnifies the importance of providing development opportunities for a firm’s management group. Organizations in the United States focus training efforts on managers and professionals.

A firm’s future lies largely in the hands of its managers. This group performs certain functions essential to the organization’s survival and prosperity. Managers must make the right choices in most of their decisions; otherwise, the firm will not grow and may even fail. Therefore, it is imperative that managers keep up with the latest developments in their respective fields and, at the same time, manage an ever-changing workforce operating in a dynamic environment. Also note that as managers reach higher levels in the organization, it is not so much their technical skills that they need, but their interpersonal skills and their business knowledge.

First-line supervisors, middle managers, and executives may all participate in management development programs. These programs are available in-house, by professional organizations, and at colleges and universities. T&D specialists often plan and present in-house programs, at times utilizing line managers. Organizations such as the Society for Human Resource Management and the American Management Association conduct conferences and seminars in a number of specialties. Numerous colleges and universities also provide management T&D programs. Colleges and universities may possess expertise not available within business organizations. In these cases, academicians and management practitioners can advantageously present T&D programs jointly. Reasons for conducting management training outside and inside the company are presented in Table 7-1.

Table 7-1 Reasons for Conducting Management Training Outside and Inside the Company

Reasons to conduct management training outside the company include these:

· An outside perspective

· New viewpoints

· Exposure to faculty experts and research

· Broader vision

Reasons for keeping management training inside the company

· Training that is more specific to needs

· Lower costs

· Less time

· Consistent, relevant material

· More control of content and faculty

· Development of organizational culture and teamwork

According to a recent study from global HR consulting firm DDI, nearly a third of global business leaders do not have the skills they need to help their organizations achieve business goals. That’s a problem, since researchers found that strong leadership can increase the successful implementation of business strategies by 22 percent. DDI’s senior vice president, Rich Wellins, says, “Companies that are worried about their future profitability should be just as worried about the future of their leadership.” Paul Bernthal, manager of DDI’s Center for Applied Behavioral, says many leaders know they lack necessary skills. “‘We’re not doing as well as we’d like,’ they say, ‘but nobody’s helping us.’” Only half the leaders surveyed are satisfied with their organization’s leadership development opportunities. Although the use of formal workshops is the most common leader development practice, only 42 percent of leaders found training workshops highly effective. Working on special projects or assignments and getting help from mentors or coaches were the most effective methods. 59

Mentoring and Coaching

Mentoring and coaching have become important means of management development. Because the purposes of mentoring and coaching are similar in concept and the terms are often used interchangeably in the literature, they are discussed together. Coaching and mentoring activities, which may occur either formally or informally, are primarily development approaches emphasizing one-to-one learning. Mentoring is an approach to advising, coaching, and nurturing, for creating a practical relationship to enhance individual career, personal, and professional growth and development. It focuses on skills to develop protégés to perform to their highest potential, leading to career advancement. 60 Mentors may be anywhere in the organization or even in another firm. For years mentoring has repeatedly been shown to be the most important factor influencing careers of both men and women. 61 Coaching is often considered a responsibility of the immediate boss, who provides assistance, much like a mentor. The coach has greater experience or expertise than the protégé and is in the position to offer wise advice. Coaching has become an excellent way to develop managers and executives. 62 Although some companies have become too lean to provide inside coaches, individual managers have independently sought out their own.

Mentoring/Coaching for Women and Minorities

How important is it for a manager to have a mentor? Some believe that having a mentor is essential to make it to the top, and the lack of one may explain why women and minorities have encountered the glass ceiling. 63 For various reasons, mentors tend to seek out their mirror images. Since women and minorities are not equally represented at the firm’s top levels, they are often left without a mentor. Studies show that women who are mentored, particularly by other women, are more likely to enhance and expand career skills, advance in their careers, receive higher salaries, and enjoy their work more. The main point is that women and minorities want and need to have advantages provided by mentors to effectively use their talents and realize their potential, not only for their personal benefit but to assist their firms. 64 Joan Gosier, a business executive, said, “Having a mentor is imperative. Some people think you can just work hard. But without a sponsor, you don’t know the unwritten rules that can take you to the next level.” 65 According to Katherine Giscombe, Catalyst senior director of research, “African-American women who have a mentor are more likely to get promoted. And those who have more than one mentor are most likely to get promoted.” 66

Specific Roles

Depending on their organizational relationship, mentors may perform various roles: they provide coaching, sponsor advancement, provide challenging assignments, protect employees from adverse forces, and encourage positive visibility. They also offer personal support, friendship, acceptance, counseling, and role modeling. Mentoring has additional advantages for new hires. Days before new hires arrive at Monster.com, they are assigned personal mentors who will guide them through the first few weeks. 67 A study sponsored by Deloitte & Touche found that Generation Xers, discussed in the appendix to this chapter, were entrepreneurial, hardworking, confident, and committed. However, they were less loyal to their employers than their predecessors. What makes a difference for them? The study found that it was mentoring. 68

Potential Problems

Although mentoring has many obvious advantages, there are reasons why the process is not foolproof. One reason is the mentor; the other is the protégé. Some managers do not have the temperament to become a mentor or coach. The role imposes additional work, and some literally have no time. Others just do not want to be bothered. On the other side, some new hires are argumentative or uninterested. Even if both parties are generally willing, there may be a personality conflict. Ultimately, the proper pairing of individuals in a mentoring/protégé relationship is critical to its success.

Reverse Mentoring

Reverse mentoring is a process where older employees learn from younger ones. 69 There are people in organizations approaching retirement who do not want to retire, and who have tremendous knowledge that should not go to waste. There are young people who know things others do not know and who are anxious to expand their horizons. The existence of these two diverse, but potentially mutually helpful, populations has led to reverse mentoring. At Procter & Gamble, the reverse mentoring program allows senior management to be mentored in an area such as biotechnology. It pairs scientists and top managers in order to explore the potential impact of biotechnology on P&G’s customers, suppliers, and overall business. 70 General Electric’s reverse mentoring program was so impressive that the program grew to include the top 3,000 managers in the company. GE even recruited a mentor for the board: Scott McNealy, CEO of Sun Microsystems. 71

According to one study, 41 percent of respondents use reverse mentoring to spread technical expertise and 26 percent rely on younger staff members to help executives gain a more youthful perspective. 72 Benefits can stem from either group. It seems reasonable that new economy managers and old economy managers can learn from each other. A classic example of this arrangement is Microsoft’s CEO Bill Gates, who regularly consults business guru Warren Buffett for advice. 73

Orientation

7 Objective

1. Define orientation and describe the executive orientation concept of onboarding.

Orientation is the initial T&D effort for new employees that informs them about the company, the job, and the work group. First impressions are often the most lasting. This lesson may apply to new employees’ impressions of their employers, and orientation programs give organizations an opportunity to begin the relationship with a good start. After all, considerable time, money, and effort often have gone into the selection process. Dennis Liberson, executive vice president for human resources at Capital One Financial Corporation, says, “We have programs in place to immediately show people what the culture is all about and what it’s going to take to succeed.” 74

Purposes of Orientation

In a recent study, 44 percent of employees polled felt they were not given the tools and resources they needed to succeed in the first few weeks on the job. 75 Therefore, effective orientation plays a large part in reducing employee turnover. Orientation formats are unique to each firm. However, some basic purposes are listed below.

· The Employment Situation. At an early point in time, it is helpful for the new employee to know how his or her job fits into the firm’s organizational structure and goals.

· Company Policies and Rules. Every job within an organization must be performed within the guidelines and constraints provided by policies and rules. Employees must understand these to ensure a smooth transition to the workplace.

· Compensation. Employees have a special interest in obtaining information about the reward system. Management normally provides this information during the recruitment and selection process and often reviews it during orientation.

· Corporate Culture. The firm’s culture reflects, in effect, “How we do things around here.” 76 This relates to everything from the way employees dress to the way they talk. Remember our earlier discussion in Chapter 6 of the importance oforganizational fit to an employee’s success.