Lecture Outline

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Training and Development: Issues and Human

Resource Information Systems Applications

CHAPTER OBJECTIVES
After completing this chapter, you should be able to do the following:

 Discuss how training can be used as a source of competitive advantage

 Differentiate between training and development (T&D)

 Understand how training and development affects both learning and

motivation

 Explain the steps in a systems model of training

 Understand the essential features of the culture of a learning organization

 Explain the factors that influence transfer of training

 Understand both the costs and the benefits metrics associated with training

 Discuss the critical importance of the evaluation of training

 Understand MIS, HRMS, and DSS (see Chapter 1) training applications

 Explain the advantages and disadvantages of Web-based learning

 Develop a practical application, using EXCEL, in the evaluation of training

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INTRODUCTION
The nature of work and the structure of organizations are rapidly changing.

Internationalization, globalization, changing customer expectations of service and

quality standards require firms to improve and transform themselves perpetually to

remain competitive.

In the new global economy, knowledge is now the new lever for success, since

knowledge potentially adds more value than the traditional factors of production—

capital, raw material, and labor (Harrison, 2005). This new knowledge-based

economy is “directly based on production, distribution and use of knowledge and

information. Knowledge is now recognised as the driver of productivity and economic

growth, leading to a new focus on the role of information, technology, and learning in

economic performance.”

The learning, training, and development (LT&D) of employees is now center stage

in today’s organizations to ensure long-term competitiveness, excellence, quality,

flexibility, and adaptability. Organizations also train and develop their workforce to

enable employees to cope with their daily workload. Training and development also

alleviates possible future skills shortages. High commitment organizations train and

develop their employees to foster employee motivation and satisfaction (Pfeffer,

1996, 1998). In a time where job security is diminishing and where employability is

of increasing value, employees place much greater emphasis on career prospects and

career development in their choice of employer.

Most large organizations utilize human resource information systems (HRIS) to

collect, store, and analyze training and development information. This information is

generally contained in specialist talent management modules, training and

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development modules, and/or learning management systems to reflect the strategic

importance of LT&D in the organization. This chapter examines the strategic

implications of implications of training and development before it covers the systems

model of training and development (T&D). This section will look in detail at its four

stages of the systems model—identifying T&D needs, designing T&D solutions,

implementing T&D, and evaluating T&D. Then, training metrics and benefit analysis

will be discussed. The next section investigates some HRIS applications in training

and some implementation issues. The chapter concludes with a summary of the key

issues.

TRAINING AND DEVELOPMENT: STRATEGIC

IMPLICATIONS AND LEARNING ORGANIZATIONS
 Education is aimed at developing, usually as part of a formal program of
study, general knowledge, understanding, and moral values.

 Training refers to the planned acquisition of knowledge, skills, and abilities

(KSA) to carry out a specific task or job in a vocational setting. The purpose
of training interventions is to attain a positive change in performance.

 Development is a continuous process of systematic advancement, of

“becoming increasingly more complex, more elaborate and differentiated,
by virtue of learning and maturation” (Collin, 2007, p. 266).

 Learning is defined as the process of assimilating new knowledge and skills

in consequence of experience or practice that will bring about relatively
permanent changes in behavior.

 Skills are directly related to performance and the ability to carry out a task.

 Bloom’s taxonomy of learning, for example, identifies six increasingly

higher levels of thinking: knowledge, comprehension, application, analysis,
synthesis, and evaluation (Bloom et al., 1956).

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  Competences compose the KSA and underlying characteristics of a person
that allow the jobholder to perform a task effectively.

 The knowledge of employees is a tacit commodity, an intangible asset. It is

associated with an understanding of and a constructive application of
information (Grant, 1996).

 Knowledge management essentially consists of five separate activities,

which are the acquisition, documentation, transfer, creation, and application
of knowledge (Yahya & Goh, 2002).

 A learning culture is one of the key levers for organizational learning,

training, and development. Transfer of training is far more likely to occur in
an environment where the basic assumptions, shared values, norms, and
artifacts of an organization espouse successful LT&D, where employees are
encouraged to create, process, and share information and knowledge
(Cummings & Worley, 2001). A T&D intervention can only be considered
successful if transfer of training has occurred and a permanent change in
behavior has taken place.

 Andragogy, or the study of adult learning, purports that adults learn best
when the following hold true:

1. They know the reason(s) for learning a new concept or skill.

2. They are actively involved in creating and setting the learning activity.

3. They can connect new learning to the knowledge and experience they have
developed over time.

4. Learning is problem centered.

5. They believe a learning activity is immediately relevant to their job.

6. They are internally rather than externally motivated to learn. In other words,
they learn when they can see a benefit (Knowles, Holton & Swanson, 2005).

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 A learning culture is one of the key levers for organizational learning,
training, and development. Transfer of training is far more likely to occur in
an environment where the basic assumptions, shared values, norms, and
artifacts of an organization espouse successful LT&D, where employees are
encouraged to create, process, and share information and knowledge
(Cummings & Worley, 2001). A T&D intervention can only be considered
successful if transfer of training has occurred and a permanent change in
behavior has taken place.

 Learning at an individual or organizational level is ineluctably linked to the

creation and management of knowledge. Learning is the basis for any T&D
activity. The outcomes of learning include skills, competencies, know-how
or tacit knowledge, and higher-level cognitive and other skills. Skills are
directly related to performance and the ability to carry out a task. It has been
argued that new organizational realities require higher levels of cognitive
skills. Bloom’s taxonomy of learning, for example, identifies six
increasingly higher levels of thinking: knowledge, comprehension,
application, analysis, synthesis, and evaluation.

 Competencies consist of KSA and the underlying characteristics of a person

that allow the jobholder to perform a task effectively. The knowledge of
employees is a tacit commodity, an intangible asset. It is associated with an
understanding of and a constructive application of information.

 In a knowledge-based economy, organizations must become knowledge

productive, and employees must become knowledge workers and knowledge
assets. Knowledge-intensive organizations are those that heavily depend on
knowledge creation and knowledge sharing, such as firms with a significant
research and development focus or consultancy firms. Knowledge
management (KM) essentially consists of five separate activities, which are
the acquisition, documentation, transfer, creation, and application of
knowledge.

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 Whereas knowledge is generated by individuals, organizational knowledge
and learning are the result of the combined learning of everybody in the
organization and the acquisition of knowledgeable individuals.

 The sharing, codifying, storing, and replicating of knowledge within the

organization is greatly facilitated by information and communication
technology (ICT). Consequently, KM focuses on the interaction of human
beings and ICT and the subsequent creation of knowledge and, in addition,
on the alignment of technology with people systems within a firm.

 The HR department plays a vital role in determining where, among

employees, tacit knowledge exists; what type of knowledge is present; and
whether and to what degree this knowledge is conducive to attaining present
and future organizational goals.

 One of the most influential proponents of the learning organization is Peter

Senge. In his book, The Fifth Discipline, he puts forward five interrelated
disciplines that an organization should cultivate among its employees to
engender learning and success (Senge, 1990):

o Personal mastery: individual growth and learning

o Mental models: deep-rooted assumptions that affect the way in which

employees perceive people, situations, and organizations

o Shared visions: a shared view of the organization’s future

o Team learning: a shift from individual learning to collective learning

o Systems thinking: or the “fifth discipline,” which connects the previous

disciplines (Burnes, 2004)

o HRIS training and development applications play a fundamental role in

fostering organizational learning. These applications provide
organizations with a mechanism to assess, measure, facilitate, manage,
and record systematically the LT&D of each employee and thus the entire
organization. In that way, HRIS LT&D applications also support HRIS

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 talent management and performance management applications. For
instance, LT&D applications may be utilized to manage the training and
development of high-potential employees. In addition, employees’
training records could feed into their performance evaluations.

Systems Model of Training and Development

o One of the most frequently cited models is the systems or systematic

approach. This formal or planned approach to workforce T&D consists of
four interrelated and connected steps.

o The steps are arranged as a cycle to highlight the cyclical and continuous
nature of the process. The systems model, then, is conceptualized as an
ongoing activity, in much the same way as is employee development.
Thus, the model is applicable to both T&D.

o Its simplicity and clear structure make it ideally suited in the context of
HRIS applications in this area.

o The model provides a rational foundation for the allocation of resources

throughout the T&D process. However, the systematic model has also
received some criticism because of its simplicity, the fact that it is a
closed system, and because it does not take account of individual
differences of the learners.

1. Identifying T&D needs. The first step of the systems model is concerned
with the identification of the learning and development needs of
organizational members. The training needs analysis (TNA) is the key
activity of the systematic approach and essentially serves to identify any
discrepancies, the T&D “gap,” between existing KSA and those required in
the present and in the future.

o Training needs may arise at three distinct levels: organizational level, job
level, and personal level.

o Because of the crucial importance and comprehensive nature of the TNA,

many organizations employ a HRIS to collect, store, and analyze training

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 needs data, thus ensuring that resulting information is both timely and
accurate. Data sources range from business objectives and statistics, at the
organizational level, to job descriptions and output levels, at the job level,
to staff appraisals, biographical data, and individual training records, at
the personal level.

2. Developing T&D initiatives. The second stage of the cycle focuses on the
development of T&D initiatives, objectives, and methods, which should be
capable of meeting the three levels of needs identified during the first phase,
the TNA.

o A learning activity can be considered successful if it leads to transfer of

learning, as well as a noticeable and permanent change in behavior in the
trainees.

o The aim of the HRIS, in this context, is to compare employee training

data with subsequent performance data. Successful learning events must
achieve a best fit between

the content of what is to be learned,

the media through which content is delivered, and

the method used to facilitate learning.

e-learning. e-Learning (also elearning, Elearning, or eLearning) is an umbrella

term and broadly refers to any learning facilitated using electronic means. E-learning

can capitalize on a variety of delivery media depending on the approach taken:

Printed media (including textbooks but also online text and online magazines and

journals)

Audio (e.g., traditional audio tapes, CDs, mp3s, wav, and other electronic file

formats)

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 Video (e.g., traditional videotape, CD-ROM, interactive video, DVDs, video

streaming, or satellite or cable transmissions)

Other combined media including hypermedia, collaborative software or social

networking technology (e.g., websites, discussion forums, e-mail, blogs, wikis,

MySpace, YouTube, Twitter, Facebook, or LinkedIn).

Although it is important to make a distinction between different forms of

collaboration, most e-learning combines various types of communication,

collaboration, e-learning methods, and, in some cases, more traditional approaches to

maximize learning transfer.

Testing and assessment of e-learning may rely on traditional paper-based methods,

electronic submission of files, and/or interactive assignments (including online

discussions).

The combination of e-learning methods with traditional face-to-face methods is

referred to as blended learning.

The key advantage of e-learning is flexibility—that is, it affords learners with the

choice over what, when, where, and how much is learned. The key disadvantages

center on the lack of human contact and technological issues.

 While standard e-learning solutions can take months to develop, rapid e-

learning (REL) or just-in-time learning solutions may be developed in
weeks, days, or even hours depending on the complexity of materials to be
created. Essentially, REL allows companies to produce a large amount of
content, using limited resources, in a short time interval, which can be
delivered in real time to a large number of people. Therefore, it is not

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 surprising that industry observers predict significant increases in the REL
market in the years to come. REL has a number of key characteristics:

o It has a short development time.

o Subject matter experts (SMEs) act as the key source of content

development.

o It can be created using standard presentation software.

o It allows for easy assessment and tracking of training.

o Auxiliary multimedia tools (including flash applications) can be used to

enhance training experience.

o Training units can be undertaken in minutes rather than hours.

o It can be synchronous as well as asynchronous (Bersin, 2005).

REL should be ideally used to deal with

o urgent and training needs,

o short shelf life of training,

o critical information needs and standard information broadcasts,

o training that is purely informational in nature,

o training that does not require mastery,

o prerequisite and introductory training, and

o training updates.

Salas et al. (2005) offer several research-based guidelines for designing e-learning

packages. Even though these guidelines pertain to distance-based learning, they are

relevant and useful for other e-learning methods as well:

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  Only provide e-learning when you are sure it meets the organization’s
specific learning and development needs.

 Train learners on computer basics before offering computer-based training.

 Take into consideration human cognitive processes when designing e-

learning programs.

 Enhance the learning experience by including graphics, texts, and learning

games in the presentation of learning topics.

 Keep learners engaged by offering blended learning and allowing interaction

among trainees and between trainees and facilitators.

 Offer trainees control over certain aspects of instruction, and guide them
through the learning process by using tools, such as cognitive maps.

Implementing T&D. The third stage of the systems model of T&D involves the

implementation of training.

To ensure that the implementation phase runs smoothly, organizations ought to

formulate an implementation plan, which should specify

 the resources required,

 how training should be carried out,

 who should facilitate training, and

 the period within which training should occur.

Training Transfer
Positive and long-lasting changes in employee behavior and ultimately increased

shareholder value can only be attained if training (or learning) transfer occurs.

Training transfer is the continuous application of the KSA acquired during the

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training exercise. Various classifications of transfer of training exist depending on the

context.

 Near versus far (How close is the training task to the actual job task?)

 Specific versus general (transfer of skills vs. transfer of principles)

 Positive versus negative (linked to the perception of the training experience)

 Lateral versus vertical

o Lateral transfer is about the application of training to similar tasks at the

same level of complexity while vertical transfer implies analysis and
synthesis—that is, the ability to apply training to more complex tasks.
Training transfer depends on a number of variables, which can be
summarized under five headings:

o Trainee characteristics (the trainee’s predisposition to training)

o Training design (the organization of the learning environment)

o Work environment (the immediate factors at work that affect transfer)

o Learning and retention

o Generalization and maintenance (ensuring that the trainee is given the

opportunity to continuously use the acquired KSA)

Evaluating T&D. In order to assess whether a particular training initiative, method, or

solution has met the training needs and objectives of the firm and whether transfer of

learning has taken place, organizations must evaluate their T&D efforts.

 Training evaluation is not an isolated activity. It is part of the T&D cycle

and must be considered alongside and aligned with needs analysis,
design, and implementation to provide a holistic picture of the entire
T&D process.

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  Not all training can be assessed in the same manner, considering the
diversity in training methods.

 Once an evaluation has been carried out, the results must be analyzed
and fed back into the training process.

 The final step is omitted in many evaluation models, even though it is

crucially important to use evaluation data to make decisions on future
training initiatives.

 A HRIS can be invaluable in supporting this process as it contains a vast

amount of data relating to training and performance, which can form the
basis of any T&D decision making.

 Lateral transfer is about the application of training to similar tasks at the

same level of complexity while vertical transfer implies analysis and
synthesis—that is, the ability to apply training to more complex tasks
(Gagné, 1985). Training transfer depends on a number of variables,
which can be summarized under five headings (Baldwin & Ford, 1988):

1. Trainee characteristics (the trainee’s predisposition to training)

2. Training design (the organization of the learning environment)

3. Work environment (the immediate factors at work that affect transfer)

4. Learning and retention

5. Generalization and maintenance (ensuring that the trainee is given the

opportunity to continuously use the acquired KSA)

Training Outcomes

 Training outcomes fall into a number of distinct categories. The number

of training evaluation models in the literature seems almost infinite.

 Kirkpatrick (1960) suggests four levels of outcomes comprising

reaction, learning, behavior, and results.

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  Warr et al.’s (1970) CIRO framework entails context, inputs, reactions,
and outcomes (immediate, intermediate, and ultimate).

 Easterby-Smith (1986) suggests a CAPIO framework comprising

context, administration, process, inputs, and outputs.

 A comparison of these and other frameworks reveals a significant

overlap between these evaluation models and a number of key learning
outcomes contained therein.

TRAINING METRICS AND COST–BENEFIT ANALYSIS

The costs involved in training can be established relatively easily. These overheads

can be substantial and involve direct costs and indirect costs (see Chapter 6 for cost–

benefit analysis) (Noe, 2002).

A considerable direct cost is the loss of production sustained through the absence

of trainees from work for the duration of the training.

E-learning significantly reduces the element of direct costs, as trainees generally

do not have to leave their place of work to participate in online training (provided

they have access to a computer). Online courses may also be taken outside of work. In

many cases, employees can avail of online training through an intranet, which can be

accessed from work and from home, thus allowing for greater flexibility at a reduced

cost.

Benefits
However, the actual benefits to the firm may be much more difficult to ascertain, as

many of the benefits take a long time to materialize or can often be of an intangible

nature. Russ-Eft and Preskill (2005) highlight three critical factors in human resource

development evaluation, which complicate the assessment of training outcomes:

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 1. Evaluation occurs within a complex, dynamic, and variable environment.

2. Evaluation is essentially a political activity.

3. Evaluation ought to be purposeful, planned, and systematic.

Phillips’s (1996c; 2005) ROI methodology (or ROI process) produces six types of

data, which are based on Kirkpatrick’s (1960) evaluation taxonomy:

1. Reaction, satisfaction, and planned action

2. Learning and application

3. Implementation

4. Business ROI

5. Intangibles

The ROI method advocates five useful steps for converting hard (tangible) data and

soft (intangible) data into monetary values:

1. Focus on a single unit of improvement in output, quality, or time.

2. Determine a value for each data unit.

3. Calculate the change in output performance directly attributable to training.

4. Obtain an annual amount of the monetary value of the change in

performance.

5. Determine the annual value (the annual performance change times the unit
value).

HRIS APPLICATIONS IN TRAINING

Today, firms place much greater demands on training applications in terms of

compatibility with existing systems, analytical functionality, and accessibility to meet

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business needs. The primary demand on any system, however, must be that it

furnishes usable information to key decision makers in order to achieve both

administrative and strategic advantages.

HRIS information should possess three key characteristics:

1. It must be presented in a user-friendly manner.

2. It must be meaningful and appropriate

3. 3. It must be used effectively in the decision making process to support

an organization’s overall business strategy

HRIS / Learning Management Systems: LMS

The vast majority of large organizations rely on fully integrated enterprise-wide

systems, called enterprise resource planning (ERP) systems, to satisfy their

information needs. An ERP amalgamates the management information systems (MIS)

compatibility from all functional areas in a business—for example, finance,

production, marketing, and HRM—into a single integrated system. The ERP that

supports the HR function is commonly referred to as an HRIS or human resource

management system (HRMS), although these are also available as stand-alone

systems.

The capabilities of today’s HRIS T&D applications, also called learning

management systems (LMS), range from training administration to training

management to talent management.

The degree to which LMS can assist strategic decision making may be assessed

using Beckers and Bsat’s (2002) decision support system (DSS) classification. Their

model consists of five levels:

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 management information systems (MIS)

decision support systems (DSS)

group decision support systems (GDSS)

expert systems (ES)

artificial intelligence (AI)

Bonadio (2009) puts forward five key issues that could enhance a learning

management system:

1. Employee development should be linked to learning delivery.

2. Learning activities ought to be aligned with business objectives.

3. Regulatory compliance must be maintained.

4. Learning effectiveness must be measured throughout the organization.

5. Establish an integrated approach to employee onboarding (employee

orientation).

HRIS Training and Development Applications – Implementation

Issues

 Many HRIS T&D projects fail to meet the expectations of key decision-
makers.

 Some firms introduce new TMS only because competitors have done
likewise, without having the necessary expertise to operate the system.

 Frequently, decision-makers have false expectations of ROI or apply

training metrics that merely focus on cost savings and fail to take note of
intangible gains derived from T&D (see section on Training Metrics).

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  In other cases, the HRIS T&D application strategy is not aligned with
training needs and the overall T&D, HR, and business strategies.

 Few organizations involve employees during the implementation stage

of the HRIS, which can lead to underutilization and dissatisfaction with
the system (Burbach & Dundon, 2005).

 For a variety of reasons, many employees never actually complete e-

learning programs that they are enrolled in.

 A number of authors have suggested success factors for the introduction

of HRIS T&D applications and for increasing e-learning completion
rates:

Align e-learning strategy with T&D strategy, HR strategy, and overall business

strategy.

Create a corporate learning culture that fosters e-learning and the use of HRIS

T&D applications.

Assess HRIS T&D projects by their suitability to meet the T&D strategy of the

organization rather than the technical sophistication and elegant features of the

system.

Carefully plan HRIS T&D projects to guarantee compatibility with legacy systems

and sufficient budget allocation and expertise to use the system.

Involve line managers and employees in HRIS T&D projects to ensure greater

buy-in.

Match HRIS T&D applications and e-learning initiatives with their ability to meet

training needs to encourage learning transfer.

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 Establish a suitable evaluation strategy to assess the extent to which training

technology meets training needs, and evaluate regularly.

Identify suitable T&D metrics that take account of all direct and indirect training

outcomes.

Promote the use of HRIS T&D applications and e-learning.

Make managers accountable for uptake of e-learning and HRIS T&D utilization.

Reward employees for use of e-learning.

Ensure that e-learning and T&D systems are user-friendly and provide quality

information.

Develop a data security policy for the T&D system and applications.

Do not focus only on financial gains from HRIS T&D projects.

Train managers and employees in the use of T&D technologies.

CHAPTER SUMMARY
This chapter highlighted the strategic importance of learning, training, and

development in an increasingly knowledge-intensive global economy. This chapter

identified and explained a range of e-learning methods, their role in knowledge

acquisition, and their advantages and disadvantages.

A careful analysis of training needs, various LT&D methods and individual

learning styles is necessary to ensure that transfer of learning occurs and that,

ultimately, the strategic objectives of the organization can be attained.

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 HRIS training and development applications are vitally important tools in pursuing

a systematic approach to LT&D—that is, to identify training needs, to design LT&D

solutions and methods, to implement these initiatives, and to evaluate the

effectiveness of training, including the assessment of return of investment of training.

As many LT&D outcomes are of an intangible nature and/or take a long time to

materialize (note the definition of development in this context), it is inherently

intricate to determine appropriate training metrics that may be employed to perform

any meaningful cost–benefit analysis. A variety of HRIS T&D applications exist.

Learning management systems may be embedded in a HRIS or ERP. The choice of

system is contingent on the T&D needs of an organization, its budget, and its ICT

capabilities.

This chapter concluded with a discussion of surrounding the implementation of

HRIS training and development applications.

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