(Mt) – University of Phoenix Career Planning and Development HR Memorandum

8 Training and Development LEARNING OBJECTIVES After completing this chapter, students should be able to: 1. 2. 3. 4. 5. 6. 8.1 Define training and development (T&D) and summarize related practices. 8.2 Describe the training and development process. 8.3 Summarize some human resource management training initiatives. 8.4 Explain the concept of careers and career planning approaches and methods. 8.5 Describe management development. 8.6 Define organization development (OD) and the learning organization. MyLab Management Improve Your Grade! Learn It If your professor has chosen to assign this, go to www.pearson.com/mylab/management to see what you should particularly focus on and to take the Chapter 8 Warm-Up. No other human resources (HR) practice set is most squarely designed to develop a company’s employees than training and development. Training and development (T&D) is the heart of a continuous effort designed to improve employee competency and organizational performance. There are many elements that fit within a T&D umbrella. The most common elements include training, career development, organizational development, and organizational learning. For the sake of organization, we can distinguish between these four elements based on two dimensions— focus on the individual employee or groups of employees and time frame, short and long term. Time frames do not come with a set number of years. Short time frames are based on the specific learning objectives and expected period for employees to learn and apply those skills. Long time frames are based on the period a company sets to achieve its strategic objectives. Figure 81 shows the organization of T&D elements. training and development (T&D) Heart of a continuous effort designed to improve employee competency and organizational performance. FIGURE 8-1 Organization of Training and Development Elements Short Term Long Term Groups/Organization Organizational Development Organizational Learning Individuals Training Career Management Training and Development and Related Practices 1. 8.1 Define training and development (T&D) and summarize related practices. Our focus in this chapter is on related practices aimed at building human capital and overall organizational capabilities. These practices are training and development, organizational development, and the learning organization. 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. We often associate development with the concept of careers and career development, management development, and mentoring and coaching practices, which we discuss later in this chapter. training Activities designed to provide learners with the knowledge and skills needed for their present jobs. development Learning that goes beyond today’s job and has a more long-term focus. 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. Individuals and groups receive the bulk of T&D efforts. However, some firms believe that to achieve needed change, they must move the entire organization in a different direction. Efforts to achieve this goal are the focus of organization development (OD). organization development (OD) Planned and systematic attempts to change the organization, typically to a more behavioral environment. Improved performance, the bottom-line purpose of T&D, is a strategic goal for organizations. 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. learning organization Firm that recognizes the critical importance of continuous performance-related T&D and takes appropriate action. As previously noted, many companies embrace these philosophies and rely on a variety of training and development approaches to align workforce capabilities with their strategic mission. The following Watch It video describes how the use of various methods helps PTC, a product development company, maintain its competitive edge. Training and Development Process 1. 8.2 Describe the training and development process. Major adjustments in the external and internal environments necessitate corporate change. The general T&D process that anticipates or responds to change may be seen in Figure 8-2. First, an organization must determine its specific needs for training. As we will see, needs are considered at the levels of the organization, task, and persons. From that information, HR professionals judge whether training is essential, and if so, what the training should be, why training should be conducted, who should be trained, and where training should occur. 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 firm’s changing strategic needs. 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 and the HR department should lead the charge. Unfortunately, more companies need to do a better job of this. One survey found that, “only one in four HR organizations have effectively integrated their talent management practices . . . with the company’s strategic objectives.”1 FIGURE 8-2 Training and Development Process Figure 8-2 Full Alternative Text FYI Companies spent an average $814 per employee for training in 2016. The amount varied by company size: • • • Small (100 to 999 employees): $1,052 Midsize (1,000 to 9,999 employees): $870 Large (10,000 or more employees): $3792 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 and must be done taking into consideration the mission of the organization. A training and development needs assessment helps companies determine whether training is necessary. It may be determined by conducting analyses on three levels, which include organization, task, and person. training and development needs assessment Heart of a continuous effort designed to improve employee competency and organizational performance. ORGANIZATIONAL ANALYSIS Organizational analysis focuses on the firm’s strategic mission, goals and corporate plans are studied, along with the results of strategic human resource planning. Let’s consider a brief example of AT&T Corp. to illustrate an organizational analysis. AT&T Corp. is a subsidiary of AT&T (formerly American Telephone & Telegraph) and its headquarters are in Dallas, Texas. The company offers voice, video, data, and Internet telecommunications and professional services to businesses, consumers, and government agencies. The company operates the secondlargest wireless network in the United States behind Verizon Wireless with 134.8 million subscribers compared to Verizon Wireless’ base of 145.7 million.3 organizational analysis Training needs assessment activity, which focuses on the firm’s strategic mission, goals, and corporate plans are studied, along with the results of strategic HR planning. AT&T led the revolution in landline telephone service in the nineteenth century and had long been the leader for decades in technology based on cables and hardware (telephone handsets). Although AT&T Corp. successfully made the transition to wireless service, the technology continues to change at breakneck speeds. Like other companies in the industry, AT&T needs to adapt to the internet and the cloud. This change entails transitioning from cable networks to fiber network technology. That’s easier said than done. AT&T’s average employee job tenure is 22 years with most of its 280,000 employees trained decades ago in “old” technology that no longer provides the company with a competitive advantage.4 AT&T Corp. recognized investments in employee development are essential to competitive advantage. Marty Richter, corporate communications manager, stated, “We’re focused on aligning company leaders to strategic business innovation and results, skilling and reskilling our 280,000 employees and inspiring a culture of continuous learning.”5 Since 2013, the company invested more than $250 million in employee development and approximately $30 million in tuition reimbursement.6 TASK ANALYSIS Task analysis focuses on the tasks required to achieve the firm’s purposes. In this case, working with fiber-optic technology is one of AT&T’s goals. Job descriptions are important data sources for this analysis level, and it is logical that customer service employees who serve in the role of sales and those who serve in post-sales service are most relevant to the CEO’s objective because they not only specify the tasks of these jobs, but also indicate the knowledge, skills, and abilities (KSAs) required to perform these jobs adequately. The following are some of the Customer Service Representative job tasks that are specified in the Occupational Information Network (O*NET).7 task analysis A training needs assessment activity, which focuses on the tasks required to achieve the firm’s purposes. • Confer with customers by telephone or in person to provide information about products or services, take or enter orders, cancel accounts, or obtain details of complaints. • Check to ensure that appropriate changes were made to resolve customers’ problems. • Keep records of customer interactions or transactions, recording details of inquiries, complaints, or comments, as well as actions taken. • Resolve customers’ service or billing complaints by performing activities such as exchanging merchandise, refunding money, or adjusting bills. • Complete contract forms, prepare change of address records, or issue service discontinuance orders, using computers. These tasks can help HR professionals determine training content and how best to design training to impart knowledge and skills. In addition, specifying the tasks better enable HR professionals to select evaluation measures of training effectiveness, including learning of knowledge and skills to perform these jobs more effectively as well as indicators of job performance changes (hopefully improvements) following the completion of training over time. PERSON ANALYSIS Person analysis focuses on obtaining answers to the questions: Who needs to be trained? What do employees need to do differently from what they’re doing today? And what kind of KSAs do employees need? person analysis A training needs assessment activity that focuses on finding answers to questions such as Who needs to be trained? What do they need to do differently from what they’re doing today? What kind of knowledge, skills, and abilities (KSAs) do employees need? Specifying the KSAs necessary for task performance is essential information that will help in the selection of training methods. For example, a simple classroom lecture could be an effective vehicle for imparting basic knowledge about customer service principles and product knowledge. Role plays could be an effective approach to having trainees demonstrate whether they have learned basic knowledge and can effectively combine knowledge with skills to effectively complete customer service representative tasks. Among many, O*NET lists the following most important KSAs, respectively, to the customer service representative job:8 • Customer and Personal Service—Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction. • Active Listening—Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times. • Oral Comprehension—The ability to listen to and understand information and ideas presented through spoken words and sentences. Establish Training and Development Program Objectives T&D must have clear and concise objectives and be developed to achieve organizational goals. Without them, designing meaningful T&D programs would not be possible. Worthwhile evaluation of a program’s effectiveness would also be difficult, at best. As we discussed in the previous section, AT&T might pursue training in various aspects of fiber-optics technology to support its goal of continual reinvention and competitiveness among its major competitors.9 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 Equal Employment Opportunity Commission (EEOC) 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 EEOC matters 4. Describe why we have 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, a trainee either can or cannot state how to get help on equal employment opportunity matters. Training 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 T&D methods, and these methods are changing continuously and improving. Regardless of whether programs are in-house or outsourced, firms use many methods for imparting knowledge and skills to the workforce and usually more than one method, called blended training, is used to deliver T&D. As part of the blended training process, e-learning is enhancing or replacing some traditional training methods. T&D methods are discussed next. Each of these training methods should be evaluated and selected for what it does best. CLASSROOM METHOD The classroom method, in which the instructor physically stands in front of students, continues to be effective for many types of training. One advantage of instructor-led training is that the instructor may convey a great deal of information in a relatively brief time. The effectiveness of instructor-led programs improves when groups are small enough to permit discussion, and when the instructor can capture the imagination of the class and use new technology to provide a better classroom learning experience. Also, the charisma or personality that the instructor brings to class may excite the students to want to learn. The classroom setting allows for real-time discussion that is not easily replicated, even with the most advanced technology. E-LEARNING The tradition of instructors physically lecturing in front of live corporate students has diminished somewhat in recent years. E-learning is the T&D method for online instruction using technology based methods such as DVDs, company intranets, and the Internet. The Internet offers many opportunities for learning. For example, companies such as Coursera and Udacity partner with universities to offer massive open online courses (MOOCs) that enable thousands of students who are located anywhere in the world at any time of the day to take university-level courses. Initially, the audience for MOOCs was mainly college-level students. Increasingly, companies are adopting MOOCs as an e-learning tool. Altogether, more than 35 million people have enrolled in MOOCs since 2011.10 Partnering with highly recognized universities that offer MOOCs could increase the value of training in a variety of ways, including through learning leading-edge information and techniques from world-famous professors and assessments by current and prospective clients that training is state-of-the art. “There’s a lot of potential for how MOOCs can be used for corporate training and development,” said Julia Stiglitz, head of business development and strategic partnerships for Coursera, which also partners with universities such as Stanford and UC Berkeley to offer online college courses.11 “The companies are looking for new ways to train their employees and get them up to speed on skills that may not have been relevant five years ago.” e-learning The T&D method for online instruction using technology-based methods such as the DVDs, company intranets, and the Internet. FYI • In a survey of individuals who completed at least one MOOC, 52 percent stated a primary goal of improving their current job or finding a new job.12 The benefits of e-learning are numerous and include decreased costs, greater convenience and flexibility, improved retention rates, and a positive environmental impact.13 It can be self-p, can often be individualized, and can be done while at work or off-shift. A concept can be viewed as often as needed. Individuals using e-learning can be working on different parts of a program, at varying speeds, and in different languages. Luxottica is an Italian eyewear and optical company whose chain stores include LensCrafters, Pearle Vision, and Sunglass Hut, with 38,000 employees worldwide. Angi Willis, Luxottica’s learning technology project manager said, “We just didn’t have the manpower, technology or budget to efficiently and effectively manage and execute our various training programs.” Luxottica put training online so employees could have instant access to information they needed to do their jobs, including details on new products and regulations as well as continuing education.14 The advantages of using e-learning are numerous, however, the biggest advantage is cost savings. According to Gordon Johnson, vice president of marketing for infrastructure provider Expertus, “Online meetings are one-third the cost of face-to-face meetings, so the question becomes not which is best, but whether face-to-face training is three times better. Usually not.”15 For Union Pacific, the largest railroad company 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. Firms that consistently have a high turnover rate have turned to e-learning because classroom learning is not cost-effective. Nike f a challenge that many 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.16 A takeoff on e-learning is the live virtual classroom, often referred to as virtual instructor led, that uses a Web-based platform to deliver live, instructor-led training to geographically dispersed learners. Organizations can bring together entire teams for just an hour or two per week. They can also bring content specialists into the classroom for only the necessary time required from two minutes to two hours. Virtual instructor led training is ideal for organizations that have many technicians needing frequent training while they continue to do their job in the field.17 The need to have large blocks of time that takes workers away from their jobs is thus eliminated. Training can now be provided in blocks of time as opposed to several days. For example, a two-day live training session might be provided in five 75-minute modules delivered over time. These provide both cost savings and convenience.18 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. The goal of the case study method is to provide trainees with the opportunity to sharpen critical thinking skills. Often, the case study method occurs with an instructor who serves as a facilitator. It is also quite common for trainees to analyze the case in teams because problem solving typically involves consultation with others. case study T&D method in which trainees are expected to 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 case studies of a variety of business functions. There are many sources of business case studies, including Harvard Business School Publishing. BEHAVIOR MODELING AND TWEETING Behavior modeling is a T&D method that permits a person to learn by copying or replicating behaviors of others. Behavior modeling has been used to train supervisors in such tasks as conducting performance 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. behavior modeling T&D method that permits a person to learn by copying or replicating behaviors of others to show managers how to handle various situations. Social networking, such as Twitter, has been used as a learning tool involving behavior modeling. “In a corporation, micro-blogging can be a way to augment behavior modeling,” says Sarah Millstein, author of the O’Reilly Radar Report. This works by having a person who excels at a task send out frequent updates about what he or she is doing. The company might even formalize the process to the extent that it would select exemplary performers to post on a regular basis and determine those employees who should follow their posts.19 ROLE-PLAYING role-playing T&D method in which participants are required to respond to specific problems they may encounter in their jobs by acting out real-world situations. Role-playing is a T&D method in which 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 by discussing it, they learn by doing. Role-playing is often used to teach such skills as administering disciplinary action, interviewing, grievance handling, conducting performance appraisal reviews, team problem solving, effective communication, and leadership-style analysis. A successful role-playing activity occurs if the activity mirrors real-life situations. It has also been used successfully to teach workers how to deal with individuals who are angry, irate, or out of control. Some restaurant chains use roleplaying to train servers how to deal with difficult situations such as a couple having an argument at the dinner table. The classic case of using role-playing is when a manager must take disciplinary action against a worker for something they did improperly. Managers never know how an employee will react when being reprimanded. When acting out the role of the worker, he or she may randomly choose from a variety of roles such as being stoic, starting to cry, promising never to do it again, or take this job and shove it. TRAINING GAMES Games can be quite useful learning tools to aid in the group dynamic process. Games are a costeffective means to encourage learner involvement and stimulate interest in the topic, thereby enhancing employees’ knowledge and performance.20 According to Elizabeth Treher, founder, president, and CEO of The Learning Key Inc., “Team-based business games result in better knowledge retention, provide focused, memorable learning and a more enjoyable learning atmosphere than traditional methods.”21 A major benefit of games is that learners retain 75 percent of the knowledge they acquire when playing games, according to research by the National Training Laboratories. McDonald’s in Japan estimates new employee training time to prepare burgers has been cut in half because of a video game created in conjunction with Nintendo.22 Microsoft Xbox support agents use the Xbox Customer Care Framework (CCF) Assessment simulator training game. The game simulates real-life circumstances caused by generating the stress and anxiety of receiving difficult customer relations calls.23 Even the U.S. Marine Corps uses a game-based training program called Mission Impact, which places learners in a simulated battalion to improve their environmental performance. Business games are 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 business situation. Participants make decisions affecting such factors as 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 can 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. business games 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 business situation. IN-BASKET TRAINING In-basket training is a T&D method in which the participant is asked to establish priorities for and then handle many business papers, e-mails, texts, memoranda, reports, and telephone messages that would typically cross a manager’s desk. The messages, presented in no 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 situation before making any decisions. This form of training has been quite beneficial to help predict performance success in management jobs. Assessment centers commonly make use of this method in the selection process. in-basket training T&D method in which the participant is asked to establish priorities for and then handle several business papers, e-mail messages, memoranda, reports, and telephone messages that would typically cross a manager’s desk. ON-THE-JOB TRAINING On-the-job-training (OJT) is an informal T&D method that permits an employee to learn job tasks by performing them. Often OJT will also have a significant impact on personal development. 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. OJT is used to pass on critical “how to” information to the trainee. Individuals may also be more highly motivated to learn because it is clear to them that they are acquiring the knowledge needed to perform the job. At times, however, the trainee may feel so much pressure to produce that learning is negatively affected. Firms should be selective about who provides OJT. Regardless of who does the training, that person must have a good work ethic and correctly model the desired behavior. on-the-job training (OJT) An informal T&D method that permits an employee to learn job tasks by performing them. APPRENTICESHIP TRAINING Apprenticeship training is a training method that combines classroom instruction with OJT. While in training, the employee earns less than the master craftsperson, who is the instructor. The National Association of Manufacturers projects that by 2020 some 10 million skilled workers will be needed and apprenticeships remain one of the most vital sources for securing skilled labor. The Manufacturing Institute projects that there will be approximately 3.5 million manufacturing job vacancies through 2025 and more than half are expected to go unfilled because of a significant shortage of skilled workers.24 Apprenticeship training is common with craft jobs, such as those of plumber, carpenter, machinist, welder, fabricator, laser operator, electrician, and press brake operator. As baby boomers continue to leave the workforce, they must be repl by competent operators, and apprenticeship programs provide an effective way of accomplishing this. Many organizations are partnering with high schools, vocational schools, and universities as they search for new skilled workers. Organizations often donate look-alike equipment to the schools so students can be trained on the system. apprenticeship training Training method that combines classroom instruction with on-the-job training. The U.S. Department of Labor has implemented regulations governing apprenticeships. Historically apprenticeships were defined by the amount of instruction time—typically 10,000 hours over four years. The new regulations offer provisions for competency-based apprenticeships, electronic and distance training, and the issuance of interim credentials. These credentials can be used toward college credits. “It’s nice because a person isn’t waiting until the end of the program to get some kind of reward,” says Steve Mandes, executive director at National Institute for Metalworking Skills (NIMS).25 For instance, Scot Forge, a metals manufacturer, pays apprentices’ tuition and wages while they complete a three-year apprenticeship program. Upon completion, apprentices earn an associate degree and a guaranteed job at the company for two years.26 The concept of apprenticeships has been expanding beyond the skilled trades. The U.S. Bureau of Labor Statistics predicts that the demand for software jobs is on the rise relative to the supply of qualified individuals. Some private companies have anticipated this need for software professionals by creating “code” schools. Code schools offer short-term education on software development basics.27 The goal is to prepare individuals to take entry-level jobs in the information technology field. FYI • Individuals who complete an apprenticeship have substantially higher annual earnings— $50,000 compared to those who do not complete an apprenticeship ($44,720).28 TEAM TRAINING Team training focuses on imparting knowledge and skills on individuals who are expected to work collectively toward meeting a common objective. For example, many automobile manufacturers organize teams to focus on the completion of car assembly. One such team installs the interior components, including dashboard, seats, carpeting, headliner, and trim. Many individuals work together to complete these tasks in an ordered sequence within a designated period to ensure that the factory meets its daily production quota. Other examples include teams of sales representatives and post-sales representatives to ensure that the customer receives a product configuration that meets its business needs and has subsequent support to ensure that employees of the client firm can properly use the product, such as inventory software. team training Training focused on teaching knowledge and skills to individuals who are expected to work collectively toward meeting a common objective. The nature of the work and business needs determines whether coordination training or crosstraining is necessary. Team coordination training educates team members how to orchestrate the work that they do to complete the task such as in the previous examples. All team training initiatives involve information sharing and procedures for ensuring that the work is conducted in proper order. For example, in the automobile assembly example, team members must ensure that all the electrical wires that run across the floor are properly connected to their appropriate components (such as power window motors) before door trim is installed. team coordination training Team training focused on educating team members how to orchestrate the individual work that they do to complete the task. The success of team coordination training can mean the difference between life and death. The U.S. Coast Guard (USCG) regularly conducts a program for its rescue and recovery mission teams, which it calls Team Coordination Training (TCT). Team Coordination Training (TCT) is a program that focuses on reducing the probability for human error by increasing individual and team effectiveness. Safety has long been the Commanding Officer’s responsibility and, until recently, was assumed to be the logical result of finely tuned technical skills. USCG mishap data suggests that while technical skills are an essential component of any job, they alone will not ensure safety.29 Cross-training educates team members about the other members’ jobs so that they may perform them when a team member is absent, is assigned to another job in the company, or has left the company altogether. Ideally, effective cross-training initiatives will raise flexibility, communication, morale, and interdepartmental relations. Cross-training is also prevalent in a variety of employment settings because pressures to manage labor costs have often led to fewer employees who are hired to perform the same job. Restaurants are a common setting where cross-training is important. For example, it may be necessary for servers to step in to assist the kitchen staff prepare meals when one or more kitchen staff members are absent. cross-training Type of training for educating team members about the other members’ jobs so that they may perform them when a team member is absent, is assigned to another job in the company, or has left the company altogether. Training and Development Delivery Systems The previous section 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 training may 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’s focus is on creating organizational change that involves areas such as company training, employee development, and adult learning. It aims to achieve its goals by conducting activities that foster individual and organizational learning and knowledge. It is proactive and strategic rather than reactive and tactical and can be closely aligned to corporate goals. Even though they are called universities, they are not so in the straightest sense because degrees in specific subjects are not granted. General Electric (GE) has its Crotonville campus and McDonald’s has its Hamburger University. corporate university T&D delivery system provided under the umbrella of the organization. Recent years have seen the decline of corporate universities as companies such as Xerox, Ford, Pfizer, Aetna, and Merrill Lynch moved away from them largely because of the significant overhead costs associated with maintaining learning facilities and dedicated staff. However, in New York City, North Shore-Long Island Jewish Health System’s corporate university serves 42,000 employees across 15 hospitals.30 Deloitte LLP has recently built a $300 million corporate university in Westlake, Texas. Its 750,000 square feet will house state-of-the-art learning technology, 800 sleeping rooms, and even a ballroom. Marc Rosenberg, a learning consultant, says, “There’s only so much you can do with social networking on the Internet, especially in services firms where you rely so much on your colleagues for help.”31 Also, firms are better able to control the quality of training and to ensure that all employees receive the same messages. 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. As we discussed, the advent of MOOCs has created greater opportunities for partnerships between educational institutions and companies. COMMUNITY COLLEGES Community colleges are publicly funded higher education establishments that deliver vocational training and associate degree programs. Also, labor unions partner with some community colleges to sponsor formal courses as part of apprenticeship programs in the skilled trades such as carpentry and plumbing. For example, a course on electrical wiring principles and practices would be found in the curriculum for apprentices preparing to become master electricians. Some employers have discovered that community colleges can provide certain types of training better and more cost effectively than the company can. Rapid technological changes and corporate restructuring have created a new demand by industry for community college training resources. ONLINE HIGHER EDUCATION A form of online e-learning that has increased substantially in recent years is the use of online higher education. Online higher education is defined as formal educational opportunities including degree and training programs that are delivered, either entirely or partially, via the Internet. 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 because it reduces their need to commute to school. It increases the range of learning opportunities for employees and increases employee satisfaction. Another point that needs to be made is that skepticism regarding the quality of online degrees appears to be fading. John Challenger, chief executive of outplacement firm Challenger, Gray & Christmas, agrees. “We did once have a clear line between online and brick-and-mortar degrees, but that’s changing,” he says. “Hiring managers are catching up.”32 online higher education Educational opportunities including degree and training programs that are delivered, either entirely or partially, via the Internet. Enrollment in online universities continues to grow.33 The University of Phoenix has the largest student body in North America. The university has more than 200 campuses worldwide and confers degrees in more than 100 degree programs at the bachelor’s, master’s, and doctoral levels. Clemson University’s Master of Human Resource Development is a fully online course designed for in-career practitioners. The 36-credit program follows a cohort structure, with approximately 40 students in each unit. Class sessions are offered several times a week, to allow for an average of 10 students in each class. Students are assigned a “home group” within the cohort, but can choose another class to attend when work/life demands such as schedule conflicts or travel arise.34 In recent years, programs have been introduced that provide students with more and more autonomy and control of their programs of study. There are basically three categories of online higher education programs available: hybrid, synchronous, and asynchronous. Hybrid programs permit students to take some classes online and some in a traditional university setting. Online synchronized study offers students the choice of studying through an online portal system, however, the student is expected to appear for most classes on a real-time schedule. With this approach, students interact with a real professor and obtain real-time support for the learning material. With asynchronous learning, students have a series of assignments that need to be completed in a certain time frame. A system is available that allows students to communicate with the professor and classmates. For instance, the University of Phoenix gives the option of completing an MBA entirely online or completing a portion on campus. All courses were six weeks in length and each assignment had to be completed in a fixed time frame. Online higher education is not for everyone and the key to success is discipline. Jeff Seaman of Babson Survey Research Group, which studies online education, said, “You need discipline. Otherwise, the ‘anytime, anywhere’ aspect frees you to put off the work.”35 VESTIBULE SYSTEM Vestibule system is a T&D delivery system that takes place away from the production area on equipment that closely resembles equipment used on the job. For example, a group of lathes may be 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. vestibule system T&D delivery system that takes place away from the production area on equipment that closely resembles equipment used on the job. VIDEO MEDIA The use of video media such as DVDs continues to be a popular T&D delivery system. These media are especially appealing to small businesses that cannot afford more expensive training methods and are often incorporated in e-learning and instructor-led instruction. In addition, they provide the flexibility desired by any firm. Behavior modeling, previously mentioned, has long been a successful training method that uses video media. SIMULATORS Simulators are a 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. T&D specialists may use simulated sales counters, automobiles, and airplanes. A prime example is the use of simulators to train pilots. Simulated crashes do not cost lives or deplete the firm’s fleet of jets. John Deere uses an Excavator Training Simulator to train new operators in a risk-free environment. The simulator provides specific realistic lessons on proper operator techniques, machine controls, and safe operation at a virtual job site.36 Crane operator trainees use a software simulator based on actual crane functions. Trainees sit in an authentic crane cab, with real control options while the simulation offers a realistic experience.37 simulators T&D delivery system comprised of devices or programs that replicate actual job demands. SOCIAL NETWORKING Today’s employees interact, learn, and work in much different ways and styles than in the notso-distant past. Increasingly mobile and geographically dispersed workforces are becoming the norm. At the same time, dwindling or stagnant travel budgets are creating a need for different training methods. Thus, some organizations are using social networking and collaborative tools to enable informal learning. In a recent study, 55 percent of respondents also expect an increase in informal learning usage, which includes social media, blogs, wikis, and discussion groups.38 Informal learning often takes place outside the corporate training departments. It does not necessarily follow a specified curriculum. The absence of formal curricula requires employers to embrace informal learning. By embracing informal learning, learners may be more motivated to gain knowledge. Thus, informal learning has surf as an important part of employee development. The premise behind the educational success of social networking is the learning approach referred to as constructivism. A constructivist learning environment differs from the traditional model. In this setting, the teacher guides the learner toward multiple learning sources, rather than acting as the sole source of knowledge.39 With more workers around the world using social media, they are getting and trusting information from their peer group more than in the past.40 Communities of practice are usually a good source of informal learning. Before joining one, the learner should conduct due diligence by gaining an understanding the kinds of knowledge and skills that are important to them. Smaller, invitation-only communities are usually beneficial, particularly when the learner knows at least one member.41 Often organizations are using communication meetings called huddles, which are usually called daily for a short period such as seven minutes, as informal learning opportunities.42 Many believe that using shared, social learning solutions will grow. Implementing Training and Development Programs A perfectly conceived training program will fail if management cannot convince the participants of its merits. Participants must believe that the program has value and will help them achieve their personal and professional goals. A long string of successful programs certainly enhances the credibility of T&D. Implementing T&D programs is often difficult. One reason is that managers are typically actionoriented and feel that they are too busy for T&D. According to one management development executive, “Most busy executives are too involved chopping down the proverbial tree to stop for the purpose of sharpening their axes.” Another difficulty in program implementation is that qualified trainers must be available. In addition to possessing communication skills, the trainers must know the company’s philosophy, its objectives, its formal and informal organization, and the goals of the training program. T&D requires more creativity than perhaps any other human resource function. Implementing training programs presents unique problems. Training implies change, which employees may vigorously resist. It may also be difficult to schedule the training around present work requirements. Unless the employee is new to the firm, he or she undoubtedly has specific full-time duties to perform. Another difficulty in implementing T&D programs is record keeping. It is important to maintain training records, including how well employees perform during training and later on the job. This information helps measure program effectiveness and charts the employees’ progress in the company. Metrics for Evaluating Training and Development Managers should strive to develop and use T&D metrics because such information can smooth the way to budget approval and executive buy-in. Most managers agree that training does not cost, it pays, and that training is an investment, not an expense. However, the actual value of the training must be determined if top management will be ready to invest in it. The traditional framework for evaluation of training is based on four criteria.43 Although this framework was developed decades ago, HR professionals call on it to organize evaluation efforts. REACTIONS The first criterion, trainee reactions, refers to the extent to which trainees liked the training program related to its usefulness, and quality of conduct. Trainee reactions, when assessed, are measured upon completion of the training session by survey. The survey questions can be specific or general (“how satisfied were you with the presentation of sales skill strategies?” versus “how satisfied were you with the overall training program?”). This information may help training designers pinpoint potential problem aspects of the training as well as possible reasons for the shortcomings. reactions Training evaluation criterion focused on the extent to which trainees liked the training program related to its usefulness, and quality of conduct. Evaluating a T&D program by asking the participants’ opinions of it is an approach that provides a response and suggestions for improvements, essentially a level of customer satisfaction. You cannot always rely on such responses, however. The training may have taken place in an exotic location with time for golfing and other fun activities, and the overall experience may bias some reports. Nevertheless, this approach is a good way to obtain feedback and to get it quickly and inexpensively. LEARNING The second criterion, learning, refers to the extent to which principles, facts, and techniques were understood and retained in memory by the employee. As with trainee reactions, learning is often assessed on completion of the training program (and sometimes, throughout the training course) by the appropriate tests (typing speed or recall of concepts from memory). Both evaluation criteria are important because positive trainee reactions and learning are expected to lead to more job-related and concrete ways of assessing training. learning The extent to which an employee understands and retains principles, facts, and techniques. Some organizations administer tests to determine what the participants in a T&D program have learned. The pre-test/post-test control group design is one evaluation procedure that may be used. In this procedure, both groups receive the same test before and after training. The experimental group receives the training but the control group does not. Each group receives randomly assigned trainees. Differences in pretest and posttest results between the groups are attributed to the training provided. A potential problem with this approach is controlling for variables other than training that might affect the outcome. Personality differences should be considered. In many cases, highly conscientious individuals tend to perform better in training than less conscientious individuals. The training environment also matters. For instance, loud noises such as jackhammering just outside the classroom window will inevitably interfere with trainees’ ability to concentrate. BEHAVIOR The third criterion, behavior change, refers to the changes in job-related behaviors or performance that can be attributed to training. Specifically, this criterion assesses transfer of training. Transfer of training refers to the extent to which an employee generalizes knowledge and skill learned in training to the work place, as well as maintains the level of skill proficiency or knowledge learned in training. The necessity of generalization may be more evident in highly complex, changing environments; maintenance is typically sought after in more straightforward settings. At AT&T, an example of generalization may be taking the principles of cybersecurity and applying them in a highly virtualized environment.44 An example of skill maintenance is whether a typing speed of 90 words per minute demonstrated during training is sustained over time when the employee is back on the job. behavior change Change in job-related behaviors or performance that can be attributed to training. transfer of training Training evaluation method focusing on the extent to which an employee generalizes knowledge and skill learned in training to the work place, as well as maintains the level of skill proficiency or knowledge learned in training. Tests may accurately indicate what trainees learn, but they give little insight into whether the training leads participants to change their behavior. For example, it is one thing for a manager to learn about motivational techniques but quite another matter for this person to apply the new knowledge. A manager may sit in the front row of a training session dealing with empowerment of subordinates, absorb every bit of the message, understand it totally, make a grade of 100 on a test on the material, and then return the next week to the workplace and continue behaving in the same old autocratic way. The best demonstration of value occurs when learning translates into lasting behavioral change. Michael Allen, winner of the Distinguished Contribution to Workplace Learning and Performance Award, said, “We don’t care about what people know. We care about what they can do . . . with what they know. Our challenge, as effective instructional designers, is to get people to make the leap from knowing to doing and that’s where we often fail.”45 ORGANIZATIONAL RESULTS The fourth criterion, results, refers to the extent to which tangible outcomes that can be attributed to training are realized by the organization. Organizational results refer to such outcomes as enhanced productivity, lower costs, and higher product or service quality. Results in the context of training indicate whether (and how well or poorly) an organization has attained competitive advantage. Likewise, assessment of results over time can inform whether (and how well or poorly) competitive advantage has been sustained over time. Whereas much research on trainee reactions, learning, and behavior has amassed over the last several decades, relatively few gains have been made for results. organizational results Typically, training outcomes such as enhanced productivity, lower costs, and higher product or service quality. Here metrics address the business’s bottom line, such as productivity data, rather than numbers of training sessions completed or the satisfaction employees gained from a training session. For instance, if the objective of an accident-prevention program is to reduce the number and severity of accidents by 15 percent, comparing accident rates before and after training provides a useful metric of success. Leslie Joyce, vice president of global talent management at Novelis and former CLO at Home Depot, said, “If there is change in behavior or improvement in performance, most CEOs I’ve worked with will agree that training has had an impact.”46 HR Web Wisdom Benchmarking www.benchnet.com The Benchmarking Exchange and Best Practices homepage is provided Return on investment (ROI) is an important results criterion. CEOs want to see training in terms that they can appreciate such as business impact, business alignment, and ROI, that is, the extent to which benefits of training outweigh the costs to provide it. However, a recent study from the ROI Institute showed that although 96 percent of executives want to see the business effects of learning, only 8 percent receive it.47 Nevertheless, in today’s global competitive environment, training will not be rewarded with continued investment unless training results in improved performance that impacts the bottom line. Today, organizations can only justify investing in training that is clearly essential to business success and that delivers results that enable the company to compete effectively. Benchmarking is the process of monitoring and measuring a firm’s internal processes, such as operations, and then comparing the data with information from companies that excel in those areas. Because training programs for different firms are unique, the training measures are necessarily broad. Common benchmarking questions focus on metrics such as training costs, the ratio of training staff to employees, and whether new or more traditional delivery systems are used. Information derived from these questions probably lacks the detail to permit specific improvements of the training curricula. However, a firm may recognize, for example, that another organization can deliver a lot of training for relatively little cost. This information could then trigger the firm to follow up with interviews or site visits to determine whether that phenomenon represents a “best practice.” benchmarking Process of monitoring and measuring a firm’s internal processes, such as operations, and then comparing the data with information from companies that excel in those areas. Quality standards are another important results measure. A well-recognized standard is the ISO 9001 quality assurance standard, which states, “Employees should receive the training and have the knowledge necessary to do their jobs.” To comply with the standard, companies must maintain written records of their employee training to show that employees have been properly trained. Think of possible questions that a compliance auditor might ask when auditing a firm. Some might be, “How does your firm assess the need for the types and amounts of training and education received by all categories of employees? What percentage of employees receives training annually? What is the average number of hours of training and education per employee?” Under ISO 9001, monitoring the quality of training is important. We have considered a variety of training methods, delivery systems, and training evaluation criteria. Careful planning and orchestration of these methods and systems is essential to achieving effective training. The Watch It video describes Wilson Learning’s approach and philosophy. Watch It 2 If your professor has assigned this, sign into www.pearson.com/mylab/management to watch a video titled Wilson Learning: Training and to respond to questions. Factors Influencing Training and Development There are numerous factors that both impact and are impacted by T&D. TOP MANAGEMENT SUPPORT For T&D programs to be successful, top management support is required; without it, a T&D program will not succeed. The most effective way to achieve success is for executives to provide the needed resources to support the T&D effort. The comments by Carol Freeland, principal/owner of ACTS+ACTS+ in Hot Springs Village, Arizona, best described the importance of support from the CEO when she said, “If the CEO does not believe in the inherent value of training, any training effort on the part of the company will be fruitless and languish.”48 HR Web Wisdom Association for Talent Development www.td.org The homepage for the Association for Talent Development is presented. SHORTAGE OF SKILLED WORKERS Shortage of future skilled workers was first projected in the 1980s but has recently received additional attention. Mark Tomlinson, executive director and general manager of the Society of Manufacturing Engineers, compares the shortage of skilled workers to viewing an iceberg in stormy seas. “We’re just approaching it; we haven’t hit it yet but we know it’s there. People are starting to see it. They just don’t know how to deal with it.”49 It took Cianbro Corporation, a heavy construction company in the Northeast, 18 months to hire 80 experienced welders.50 JetBlue Airways, like most commercial airlines, are feeling the pinch of a pilot shortage. The substantial expense to meet the lengthy period over which they qualify to fly passenger jets has contributed to this shortage. JetBlue has developed an innovative trial training program to prepare pilots for flight duties over a much shorter period. JetBlue spokesman Doug McGraw said that the trial program is designed to build, “the complex skills required of airline pilots from the first day.”51 Though shorter, McGraw emphasized that the quality of preparation will not be compromised, by emphasizing the goal, “to ensure the quality of our current cadre of pilots is maintained.”52 These examples point to the problems of finding qualified employees and providing them with essential training. Unemployment figures are misleading because they do not show employers who are begging for skilled workers. Worldwide many companies are struggling to find skilled workers. Baby boomers—the best-educated and most-skilled workforce in U.S. history—are preparing to retire. Labor experts are concerned that workers in the United States lack the critical skills needed to replace baby boomers. Silicon Valley companies are having difficulty finding software engineers; Union Health Service and the Harvard hospital system find it hard to find nurses and technicians; and manufacturers such as Caterpillar and Westinghouse cannot hire enough welders and machinists to operate their state-of-the-art lathes.53 Part of the problem in finding qualified people for manufacturing jobs is that there is a generation of young people for which manufacturing has not been an attractive job prospect because they have seen many jobs outsourced and they question the long-term future in these jobs. In addition, training needs are changing and the old skill requirements of reading, writing, and arithmetic have been expanded. Executives are increasingly demanding additional skills of their new hires such as critical thinking and problem solving, communication, collaboration, and creativity.54 TECHNOLOGICAL ADVANCES Change is occurring at an amazing speed, with knowledge doubling every year. Perhaps no factor has influenced T&D more than technology. As technology becomes capable of handling more and more tasks, employers combine jobs and confer broader responsibilities on remaining workers. For example, the technology of advanced automated manufacturing, such as that in the automobile industry, is today doing the jobs of other employees, including the laborer, the materials handler, the operator-assembler, and the maintenance person. In fact, it is now commonplace for a single employee to perform all those tasks in a position called “manufacturing technician.” The expanding range of tasks and responsibilities in almost all jobs demand higher levels of reading, writing, and problem-solving skills. Employees must possess higher levels of reading skills than before because they must now be able to read the operating and troubleshooting manuals (when problems arise) of automated manufacturing equipment that is based on computer technology. Previously, the design of manufacturing equipment was relatively simple and easy to operate, based on simple mechanical principles such as pulleys. Technological innovation also has fostered increased autonomy and team-oriented work places, which also demand different job-related skills than employees once needed. For example, the manufacturing technician’s job mentioned previously, is generally more autonomous than its predecessor. Thus, technicians must be able to manage themselves and their time. Employers now rely on working teams’ technical and interpersonal skills to drive efficiency and to improve quality. Today’s consumers often expect customized products and applications, which require that employees possess sufficient technical skill to tailor products and services to customers’ needs, as well as the interpersonal skills necessary to determine client needs and customer service. GLOBAL COMPLEXITY The world is simply getting more complex, and this has had an impact on how an organization operates. No longer does a firm just compete against other firms in the United States. Now more than ever, to sustain competitive advantage companies must provide their employees with leading-edge skills, and encourage employees to apply their skills proficiently. Increasing customer expectations also mean the standards for success are constantly rising. To compete in the more complex global environment, companies must be able to simultaneously integrate global operations, respond to diverse local/national needs within subsidiary operations, and implement innovation rapidly around the world. There is reason to suspect that many U.S. firms are already behind in this regard. Employers in both the European Common Market and some Pacific Rim economies have long emphasized learning as a proactive tool for responding to strategic change. For example, in Ireland, the private sector offers graduate employment programs in skill areas such as science, marketing, and technology. In short, global competition necessitates that companies in the United States become more productive and there is growing consensus that training must be at the forefront of their attempts to do so. LEARNING STYLES Although much remains unknown about the learning process, what is known affects the way firms conduct training. It is known that adults retain approximately 20 percent of what they read and hear, 40 percent of what they see, 50 percent of what they say, 60 percent of what they do, and 90 percent of what they see, hear, say, and do.55 Because of these differences, it is important to use a wide range of T&D methods. Learning style supports the concept that people have a natural preference, based on their dominant sense, in how they choose to learn and process information. It may be visual, hearing, or touching.56 Some learn best from working in a group whereas others prefer studying on an individual basis. Still others absorb best by seeing how the material provides a practical application, and others want to know the theoretical basis. Some learners can readily absorb information by reading written words whereas others learn best through hearing the words spoken. In studying the information in this text, the different learning styles will become apparent. There are exercises at the end of each chapter to provide hands-on application of the material. Being able to read the words in the text will appeal to some whereas others will learn best through hearing the instructor’s lecture. Each chapter’s PowerPoint slides provide a visual representation of the material. The incidents at the end of each chapter require extending your newfound knowledge in a practical manner. To cope with the different learning styles, firms use multiple methods, called blended training (also referred to as blended learning), to deliver T&D. This involves using a combination of training methods that are strategically combined to best achieve a training program’s objectives.57 John Leutner, head of global learning services for Xerox corporate HR, said, “The new blended learning is about creating a richer, more meaningful development experience that relates to a person’s work and performance.”58 Starbucks Coffee uses a blended learning approach to certify its baristas. Trainees receive 70 percent of their training through onthe-job experiences and hands-on training, 20 percent from peer feedback and peer mentorship, and 10 percent from online training modules.59 blended training The use of multiple training methods to deliver T&D. Another learning principle is that learners progress in an area of learning only as far as they need to achieve their purposes. Professors have long known that telling students which concepts are important motivates them to study the material, especially if the information is prime test material. Research indicates that unless there is relevance, meaning, and emotion attached to the material taught, trainees will not learn. Another learning principle is that the best time to learn is when the learning can be useful. One way this impacts T&D is the need for training on a timely basis. Just-in-time training (ondemand training) is training provided anytime, anywhere in the world when it is needed. For example, transport and logistics company AP Moller Maersk, capitalizes on team-based learning that begins with finding solutions to significant market threats and opportunities. The company assembles global teams to tackle business problems. Team members benefit from each other’s unique expertise and perspectives. In just a few years, AP Moller Maersk deemed this program a success based on financial outcomes and growth of new business opportunities.60 In addition to working alongside team members, computer technology, the Internet, intranets, smartphones, and similar devices have made these approaches economically feasible to a degree never possible before. 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. just-in-time training (on-demand training) Training provided anytime, anywhere in the world when it is needed. 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 or its compensation package attract only marginally qualified workers, a firm will need extensive T&D programs. Hiring marginally qualified workers will likely have a significant impact on the firm’s safety and health programs. Therefore, additional training will be required. Human Resource Management Training Initiatives 1. 8.3 Summarize some human resource management training initiatives. HR is responsible for many company-wide training initiatives on HR-related matters. Among these initiatives are orientation (onboarding), ethics, compliance (equal employment opportunity, Occupational Safety and Health), and diversity. We will limit our discussion to orientation (onboarding) here and safety training is discussed in Chapter 13. Resources for other types of compliance training are available online on the government agency responsible for the compliance issue. For example, the Office of Federal Contract Compliance Programs Web site addresses affirmative action requirements, and the U.S. Department of Labor provides learning resources for determining whether jobs are exempt from the overtime pay provision of the Fair Labor Standards Act. Orientation is the initial T&D effort to inform new employees about the company, the job, and the work group. It becomes a way to engage new employees and reinforce the fact that they made the proper career choice. It also familiarizes them with the corporate culture and helps them to quickly become productive. A good orientation program is quite important because first impressions are often the most lasting and need to start the minute an applicant accepts an offer of employment. One of the orientation goals at Booz Allen is to make a positive first impression and create excitement before the new hire’s first day on the job, using their online new-hire portal.61 orientation Initial T&D effort for new employees that informs them about the company, the job, and the New employees usually decide whether to stay at a company within their first six months of employment, and orientation programs give organizations an opportunity to get the relationship off to a good start. Therefore, new-hire orientation programs are particularly crucial for the rapid transition from new hires to contributing members of the organization. Orientation formats are unique to each firm. However, some basic purposes are listed here. • 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 into 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.” This relates to everything from the way employees dress to the way they talk. • Team Membership. A new employee’s ability and willingness to work in teams was likely determined before he or she was hired. In orientation, the program may again emphasize the importance of becoming a valued member of the company team. • Employee Development. An individual’s employment security is increasingly becoming dependent on his or her ability to acquire needed knowledge and skills that are constantly changing. Thus, firms should keep employees aware not only of company-sponsored developmental programs, but also of those available externally. • Socialization. To reduce the anxiety that new employees may experience, the firm should take steps to integrate them into the informal organization. Some organizations have found that employees subjected to socialization programs, including the topics of politics and career management, perform better than those who have not undergone such training. To this list, add the fact that there are numerous forms and documents a new employee must complete or read and acknowledge. Supervisors represent the front line of orientation. Roger Chevalier, California-based management consultant and author of A Manager’s Guide to Improving Workplace Performance, said, “If employees are selected properly, 85 percent of whether they will succeed is based on the environment created by a supervisor.” 62 Peers also often serve as excellent information agents. There are several reasons for using peers in performing this function. For one thing, they are accessible to newcomers, often more so than the boss. Peers also tend to have a high degree of empathy for new people. In addition, they have the organizational experience and technical expertise to which new employees need access. Some organizations assign a mentor or “buddy” to new hires to work with them until they are settled in. Although orientation can occupy a new employee’s first few days on the job, some firms believe that learning is more effective if spread out over time. A company may deliver a program in a system of 20 one-hour sessions over a period of several weeks, or extend the program over a much longer period. For example, IBM developed Succeeding@IBM, which is a two-year program that delivers new information covering corporate values, strategy, tools, and the resources needed to be successful. IBM distinguishes its orientation program from others, in part, by incorporating personalized learning plans. Some firms are sensitive to information overload and make information available to employees on an as-needed basis. For example, a new supervisor may eventually have the responsibility for evaluating his or her subordinates. But knowledge of how to do this may not be needed for six months. A training segment on performance evaluation may be pl on the Internet or a firm’s intranet and be available when the need arises. This approach is consistent with just-in-time training, mentioned previously. Careers and Career Planning Approaches and Methods 1. 8.4 Explain the concept of careers and career planning approaches and methods. In the sections that follow, we will address a series of interrelated topics—careers, career paths, and career planning. A career is a general course that a person chooses to pursue throughout his or her working life. Historically, a career was a sequence of work-related positions an individual occupied during a lifetime, although not always with the same company. However, today there are few relatively static jobs. A career path is a flexible line of movement through which a person may travel during his or her work life. Following an established career path, the employee can undertake career development with the firm’s assistance. From a worker’s perspective, following a career path may involve weaving from company to company and from position to position as he or she obtains greater knowledge and experience. Career paths have historically focused on upward mobility within an occupation, which was a choice not nearly as available as in the past. The days of the cradle to the grave job have largely disappeared. Other career paths include the network, lateral skill, dual-career paths, adding value to your career, demotion, and being your own boss as a free agent. Most careers are no longer a straight ascent up the corporate ladder. By selecting an alternative career path, a person may transfer current skills into a new career, one that was only dreamed about in the past. Typically, these career paths are used in combination and may be more popular at various stages of a person’s career. career General course that a person chooses to pursue throughout his or her working life. career path A flexible line of movement through which a person may travel during his or her work life. In the following Watch It video, you will learn that Verizon provides employees with the opportunity to develop a career path that fits their interests and the company’s needs. Verizon also provides a variety of training programs to help facilitate the attainment of career goals. Watch It 3 If your professor has assigned this, sign into www.pearson.com/mylab/management to watch a video titled Verizon: Career Planning and to respond to questions. Traditional Career Path Although the traditional career path is not as viable a career path option as it previously was, understanding it furthers one’s comprehension of the other career path alternatives. The traditional career path is one in which an employee progresses vertically upward in the organization from one specific job to the next. The assumption is that each preceding job is essential preparation for the next-higher-level job. Therefore, an employee must move, step-bystep, from one job to the next to gain needed experience and preparation. One of the biggest advantages of the traditional career path is that it was straightforward and very predictable.63 The path was clearly laid out, and the employee knew the specific sequence of jobs through which he or she must progress. traditional career path Employee progresses vertically upward in the organization from one specific job to the next. Today, the old model of a career in which an employee worked his or her way up the ladder in a single company is becoming somewhat rare. The up-or-out approach, in which employees must keep getting promoted quickly or get lost, is becoming outmoded. The certainties of yesterday’s business methods and growth have disappeared in most industries. However, the one certainty that remains is that there will always be top-level managers and individuals who strive to achieve these positions. The way these positions are obtained may be different. Network Career Path The network career path contains both a vertical sequence of jobs and a series of horizontal opportunities. The network career path recognizes the interchangeability of experience at certain levels and the need to broaden experience at one level before promotion to a higher level. Often, this approach provides more realistic opportunities for employee development in an organization than does the traditional career path. For instance, a person may work as an inventory manager for a few years and then move to a lateral position of shift manager before being considered for a promotion. The vertical and horizontal options lessen the probability of blockage in one job. Royal Caribbean crew members are often given several different work assignments prior to a promotion. One major disadvantage of this type of career path is that it is more difficult to explain to employees the specific route their careers may take for a given line of work. network career path Method of career progression that contains both a vertical sequence of jobs and a series of horizontal opportunities. The benefits of a network career path are not limited to lower-level positions in the organizational job structure. An interesting research study provides evidence that following a network career path may be the best route to becoming a high-ranking executive, including CEO. Data from LinkedIn revealed that experience in one additional functional area improved the odds of becoming an executive as much as gaining three years of additional experience.64 Also, taking assignments in four functions was nearly as helpful as earning an MBA from a highly-ranked program. Lateral Skill Path The lateral skill path allows for lateral moves within the firm, taken to permit an employee to become revitalized and find new challenges. Neither pay nor promotion may be involved, but by learning a different job, an employee can increase his or her value to the organization and become rejuvenated and reenergized. Firms that want to encourage lateral movement may choose to use a skill-based pay system that rewards individuals for the type and number of skills they possess. Another approach is job enrichment. This approach rewards (without promotion) an employee by increasing the challenge of the job, giving the job more meaning, and giving the employee a greater sense of accomplishment. lateral skill path Career path that allows for lateral moves within the firm, taken to permit an employee to become revitalized and find new challenges. Dual-Career Path The dual-career path was originally developed to deal with the problem of technically trained employees who had no desire to move into management through the normal upward mobility procedure. The dual-career path recognizes that technical specialists can and should be allowed to contribute their expertise to a company without having to become managers. A dual-career approach is often established to encourage and motivate professionals in fields such as engineering, sales, marketing, finance, and HR. Individuals in these fields can increase their specialized knowledge, make contributions to their firms, and be rewarded without entering management. Whether on the management or technical path, compensation would be comparable at each level. The dual system has been a trademark in higher education, where individuals can move through the ranks of instructor, assistant professor, associate professor, and professor without having to go into administration. dual-career path Career path that recognizes that technical specialists can and should be allowed to contribute their expertise to a company without having to become managers. Adding Value to Your Career Adding value to your career may appear to be totally self-serving, but nevertheless, it is a logical and realistic career path. In the rapidly changing world today, professional obsolescence can creep up on a person. What makes a person valuable in today’s work environment is the knowledge and experience he or she brings to a job. An individual’s knowledge must be ever expanding, and continual personal development is a necessity. The better an employee’s qualifications, the greater the opportunities he or she has with the present firm and in the job market. A person must discover what companies need, then develop the skills necessary to meet these needs as defined by the marketplace. Individuals should always be doing something that contributes significant, positive change to the organization. If any vestige of job security exists, this is it. Basically, the primary tie that binds a worker to the company, and vice versa, is mutual success resulting in performance that adds value to the organization. Demotion Demotion is the process of moving a worker to a lower level of duties and responsibilities, which typically involves a reduction in pay. Demotions have long been associated with failure, but limited promotional opportunities in the future and the fast pace of technological change may make demotion a legitimate career option. If the stigma of demotion can be removed, more employees, especially older workers, might choose to make such a move. Some people get into a position only to find their skills were better suited to their old job. Sometimes they decide they do not want to have as much responsibility because of things going on in their personal lives. Working long hours for limited promotional opportunity loses its appeal to some after a while, especially if the worker can financially afford the demotion. In certain instances, this approach might open a clogged promotional path and at the same time permit a senior employee to escape unwanted stress without being viewed as a failure. demotion Process of moving a worker to a lower level of duties and responsibilities, which typically involves a reduction in pay. Free Agents (Being Your Own Boss) Free agents are people who take charge of all or part of their careers by being their own bosses or by working for others in ways that fit their needs or wants. Many became free agents because of company downsizing and have no desire or would have difficulty reentering the corporate world.65 Free agents are said to work in the gig economy, which simply refers to working as an independent contractor to complete projects for one or more clients. Free agents most often get projects (or gigs) using a Web site or mobile app that helps to match them with customers.66 free agents People who take charge of all or part of their careers by being their own bosses or by working for others in ways that fit their needs or wants. Some free agents work full-time, others work part-time. Still, others work full-time and run a small business in the hope of converting it into their primary work. Free agents come in many shapes and sizes, but what distinguishes them is a commitment to controlling part or all their careers. They have a variety of talents and are used to dealing with a wide range of audiences and changing their approach on the spot in response to new information or reactions. Free agents most commonly work in one or more of the following industries (and a common job title): arts and design (graphic designers), computer and information technology (Web developers), construction and extraction (painters), media and communications (photographers), and transportation and material moving (delivery drivers).67 They also tend to love challenges and spontaneity.68 Career Planning Approaches Career planning is an ongoing process whereby an individual sets career goals and identifies the means to achieve them. Individuals in today’s job market must truly manage their careers. Career planning should not concentrate only on advancement opportunities because the present work environment has reduced many of these opportunities. At some point, career planning should focus on achieving successes that do not necessarily entail promotions, even if it means taking a lower-paying job in an industry, such as health care, where growth opportunities are plentiful.69 Or, it may mean staying put under the right circumstances. A Glassdoor survey revealed that a positive workplace culture, often established by good working relationships, is associated with higher retention.70 The survey also found that a negative workplace culture is associated with significantly higher turnover. Altogether, these findings may suggest that employees are satisfied with their current career status. career planning Ongoing process whereby an individual sets career goals and identifies the means to achieve them. “If you don’t know where you’re going, any road will get you there,” is certainly true in career planning. Career planning must now accommodate several objectives and enable us to prepare for each on a contingency basis. It will need updating to accommodate changes in our own interests as well as in the work environment. Historically, it was thought that career planning was logical, linear, and indeed, planned. Today, a new job assignment often is thought of as being paid to learn a new task and increase your experience level in case you must leave your job. Because of the many changes that are occurring, career planning is essential for survival for individuals and organizations. Individuals should have a strategy or plan for unexpected career events that begins while they are still employed. SELF-ASSESSMENT Self-assessment is the process of learning about oneself. Anything that could affect one’s performance in a future job should be considered. It is one of the first things that a person should do in planning a career. A self-assessment can help a person target career choices and goals. Conducting a realistic self-assessment may help a person avoid mistakes that could affect his or her entire career progression. A person should take time to analyze his or her past successes and failures. A thorough self-assessment will go a long way toward helping match an individual’s specific qualities and goals with the right job or profession. Remember, you cannot get what you want until you know what you want. The self-assessment is not something that is done once and forgotten. It is something that spans a career and into retirement. The self-assessment may show that you do not want to retire at 65. Some enjoy working well past what traditionally has been thought of as the retirement age. As a 95-year-old former mentor said, “work is what keeps me alive and going. Everyone I know who retired died young, and certainly much younger than me.”71 self-assessment Process of learning about oneself. strength/weakness balance sheet A self-evaluation procedure, developed originally by Benjamin Franklin, that assists people in becoming aware of their strengths and weaknesses. A self-evaluation procedure, developed originally by Benjamin Franklin that assists people in becoming aware of their strengths and weaknesses is the strength/weakness balance sheet. Employees who understand their strengths can use them to maximum advantage. By recognizing their weaknesses, they are in a better position to overcome them. This statement sums up that attitude; “If you have a weakness, understand it and make it work for you as a strength; if you have a strength, do not abuse it to the point at which it becomes a weakness.” To use a strength/weakness balance sheet, the individual lists strengths and weaknesses as he or she perceives them. This is quite important, because believing, for example, that a weakness exists even when it does not can equate to a real weakness. Thus, if you believe that you make a poor first impression when meeting someone, you will probably make a poor impression. The perception of a weakness often becomes a self-fulfilling prophecy. Table 8-1 shows an example of a strength/weakness balance sheet. Typically, a person’s weaknesses will outnumber strengths after the first few attempts. However, as the individual repeats the process, some items that first appeared to be weaknesses may eventually be strengths and should then be moved from one column to the other. A person should devote sufficient time to the project to obtain a clear understanding of his or her strengths and weaknesses. Typically, the process should take at least several days during which the list is drafted and subsequently modified. People change, and every few years the process should again be undertaken again. TABLE 8-1 Strength/Weakness Balance Sheet Strengths Weaknesses Work well with people. Do not like constant supervision. Good manager of people. Often say things without realizing consequences. Hard worker. Cannot sit at a desk all the time. Lead by example. A rebel at heart but have portrayed myself as just the opposite. My conservatism has gotten me jobs that I emotionally did not People respect me as being want. fair and impartial. Am sometimes nervous in an unfamiliar environment. Tremendous amount of energy. Interest level hits peaks and valleys. Get the job done when it is Many people look on me as being unstable. defined. Not a tremendous planner for short range. Excellent at organizing other people’s time. Can get the most out of people Exclusively better at long-range planning. Impatient—want to have things happen fast. who are working for me. Have a great amount of empathy. A likes and dislikes survey assists individuals in recognizing restrictions they place on themselves. Connecticut-based career counselor Julie Jansen said, “It’s important in identifying what you want to do, what your skills are, and what you don’t—and do—like about your current occupation.”72 You are looking for qualities you want in a job and attributes of a job you do not want. For instance, some people are not willing to live in certain parts of the country, and such feelings should be noted as a constraint. Some positions require a person to spend considerable amount of time traveling. Thus, an estimate of the amount of time a person is willing to travel would also be helpful. Recognition of such self-imposed restrictions may reduce future career problems. likes and dislikes survey Procedure that helps individuals in recognizing restrictions they place on themselves. The size of the firm might also be important. Some like a major organization whose products or services are well known; others prefer a smaller organization, believing that the opportunities for advancement may be greater or that the environment is better suited to their tastes. All factors that could affect an individual’s work performance should be listed in the likes and dislikes survey. An example of this type of survey is shown in Table 8-2. TABLE 8-2 Likes and Dislikes Survey Likes Dislikes Enjoy traveling Do not want to work for a large firm Would like to live in the Southeast United States Would not want to work in a large city Enjoy being my own boss Would not like to work behind a desk all day Would like to live in a medium-sized city Would not like to wear suits all the time Enjoy watching football and baseball Enjoy playing racquetball FORMAL ASSESSMENT Combining self-assessment with formal assessment tools designed to inform career planning considerations provides a more comprehensive approach. Formal assessment refers to the use of established external approaches to facilitate evaluation of an issue at hand. There are many tools, including the use of performance appraisal, which we already addressed in Chapter 7. An example is the 360-degree feedback method. In this chapter, we will focus on another approach. In the career planning domain, testing tools to identify career interests based on values and personality represent one approach. Although individuals may complete these tests on their own and read the report that is generated based on their responses, it often makes sense to work with a career counselor who can answer questions and make further recommendations. formal assessment The use of established external approaches to facilitate evaluation of an issue at hand. Perhaps the most well-known example is the Myers-Briggs Type Indicator (MBTI). This assessment tool contains dozens of questions that elicit an individual’s preferences for how they would behave in different situations. The MBTI describes the following four preferences: Energy measures an individuals’ degree of extraversion or introversion to determine whether a person gains energy through interpersonal relationships (extraversion) or through selfreflection (introversion). Information-Gathering measures a preference for gathering information about facts to consider before deciding (Sensing) or a preference for gathering information about possibilities before deciding. Decision making measures a preference for consideration a person gives to their own or others’ feelings and values relative to facts and details. Preferences to consider the effect of a decision on personal feelings as well as on others (Feeling) stand in contrast to a preference to make objective decisions (Thinking). Lifestyle refers to an individual’s inclination to be either flexible or structured. A preference to establish goals, strategies for goal attainment, and deadlines for meeting them (Judging) stands in contrast to a preference for embracing the unexpected, modifying decisions, and working without definitive timelines and deadlines (Perceiving). An example of a formal test is the Career Key, which is based on Holland’s Theory of Career Choice. This theory is premised on the idea that people are more likely to thrive in situations that match their personalities. It specifies six personality and corresponding situational types. For example, according to Holland’s theory:73 Persons having an Investigative personality type “dominate” this environment. There are more of them than there are people of other personality types. For example, in a scientific laboratory there will be more persons having an “Investigative” personality than there will be people who have an “Enterprising” type. “Investigative” people create an “Investigative” environment. For example, they particularly value people who are precise, scientific, and intellectual—who are good at understanding and solving science and math problems. Examples of jobs that fit this description include architects and physicians. As you can see, both informal and formal career assessments provide you with useful information. The sheer volume of information can be overwhelming. Still, it is important to sort through this information and think strategically about the next steps. Marketing strategist Dorie Clark suggests preparing a résumé of how you envision yourself five years into the future.74 Specifically, state your desired job title and responsibilities. This exercise not only provides a vision for the foreseeable future, but also should serve as a prompt to figure out the next steps toward getting there. Try It! If your professor has assigned this, sign onto www.pearson.com/mylab/management to complete the Managing Your Career simulation and test your application of these concepts when f with real-world decisions. Career Development Methods Career development is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Beverly Kaye, coauthor of Love ‘Em or Lose ‘Em: Getting Good People to Stay, studied the top 20 reasons employees remain with their company and discovered that career development opportunities were number one on the list. It was even more important than receiving greater pay.75 With career development, the organization identifies paths and activities for individual employees as they develop. career development Formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Career planning rests with the employee. However, career development must closely parallel individual career planning if a firm is to retain its best and brightest workers. Employees must see that the firm’s career development effort is directed toward furthering their specific career objectives. Companies must therefore help their employees obtain their career objectives and most notably, career security. They must provide them with opportunities to learn and do different things. Performing the same or a similar task over and over pro…

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