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Training and Development

Prof. Promila Agarwal


Introduction

 Training is a systematic process through which an organization’s


human resources gain knowledge and develop skills by instruction
and practical activities that result in improved corporate
performance.

 Training Vs Development
 Both refer to the learning of job-related behaviour
 Training
 Focuses on job performance
 Emphasis is on acquisition of specific KSAs needed for present job
 Development
 Focuses on personal growth, longer-term development
 Emphasis is on acquiring KSAs needed for future job or organizational need
Prepared by Prof. Promila Agarwal
Factors affecting Training and Development

 Training and development activities have been


increasing

 Tight labour market: Organizations compete to attract & retain


employees, by offering better T&D opportunities
 New and changing technology – new KSAs
 Globalization – training for employees with international
assignments
 Mergers, acquisitions, restructuring
 Jobs change, employees need new KSAs
Prepared by Prof. Promila Agarwal
Importance of Training

 Maintains qualified products / services


 Achieves high service standards
 Provides information for new comers
 Refreshes memory of old employees
 Achieves learning about new things; technology,
products / service delivery
 Reduces mistakes - minimizing costs
 Opportunity for staff to feedback / suggest
improvements
 Improves communication & relationships - better
teamwork
Prepared by Prof. Promila Agarwal
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The Gap Concept

Expected Curve

1,000 Cars Gap


200 Cars
Performance Actual Curve
/Results
800 Cars

Time
In training terms this means we need to
develop programs to fill the Gap
Prepared by Prof. Promila Agarwal
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Training Needs

The reasons for not As training experts we must


making the 1,000 cars: analyze the situation to
 Not enough resources determine if:
 Poor machines  Expected result too high
 Poor staff skills  Target achievable
 Is training the only way to
make it happen
 Are there other factors.

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3 Reasons to Consider Conducting
an Internal Needs Analysis

1. Employee obsolescence/out-dated –
 Technical advancements, cultural changes, new
systems, computerization
2. Career plateaus
 Need for education and training programs
3. Employee Turnover
 Development plan for new employees

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The ASK Concept

 If we follow the GAP concept, training is simply


a means to use activities to fill the gaps of
performance between the actual results and
the expected results.
 This GAP can be separated into 3 main themes
1. Attitude: Most Difficult
2. Skills: : Moderately Difficult
3. Knowledge: Relatively Easy

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Model of the Training Process

Assessment Stage Training Stage Evaluation Stage


Organizational
Needs Assessment

Task Need Assessment

Development of Design & Select Measure Training


Training Objectives Procedures Results

Development of Train Compare Results to


Criteria for Training Criteria
Evaluation
Feedback 9

Prepared by Prof. Promila Agarwal


*Goldstein, I. (2002) Training in Organizations 4th Ed.
Nine Steps in the Training Process

1. Assessing training needs


2. Specifying training objectives
3. Preparing training plan
4. Designing the training program(s)
5. Selecting the instructional methods
6. Completing the training plan
7. Implementing the training program
8. Evaluating the training
9. Planning future training
Prepared by Prof. Promila Agarwal
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Designing the Training Program(s)

1. Program duration 7. Training location &


2. Program structure environment
3. Instruction methods 8. Criteria & methods for
4. Trainers qualification assessing participant
learning and
5. Nature of trainees achievement
6. Support resources – 9. Criteria & methods for
materials, OHP, evaluating the program
classroom

Prepared by Prof. Promila Agarwal


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Selecting Instructional Methods

On-the job-training (OJT)


 learn while you’re working
 Apprenticeship.
Off -the job-training
 In house, training or classroom
 External, consultancies or attending external classes
 Independent bodies, such as government talks
 Distance learning, from books or notes
 Computer-assisted learning
 Interactive-video training
 Video conferencing, same as classroom except teachers and students are in different
locations.
 Simulations
 Case studies
 Business games
 Role plays
 Behavior modeling

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Information Needed to Identify Training Needs

 Accidents report  Staff discipline report


 Sick leave report  Staff enquiries & complaints
 Employee compensation
statistics  Guests complaints
 Product quality control  Refusal of orders made
report  Quality of product report
 Wastage report
 Market needs & trends
 Efficiency report
 Machinery out-of-order  Demographic data &
report background of employees

Prepared by Prof. Promila Agarwal


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Kirkpatrick’s Four-Level Framework of Evaluation
Criteria

Prepared by Prof. Promila Agarwal


Determining Costs for a Cost Benefit Analysis

Direct Costs
Instructor $ 0
In-house Instructor (12 days @ $125 per day) 1500
Fringe benefits (25% of salary) 375
Travel expenses 0
Materials ($60 X 56 trainees) 3360
Classroom space and audiovisual equipment
(12 days @ %50 per day 600
Refreshments ($4 per day X 3 days X 56 trainees) 672
Total direct costs $ 6507

Indirect Costs
Training management $ 0
Clerical and administrative salaries 750
Fringe benefits (25% of salary) 187
Postage, shipping and telephone 0
Pre- and posttraining learning materials ($4 x 56 trainees) 224
Total indirect costs $ 1161

Prepared by Prof. Promila Agarwal


Determining Costs for a Cost Benefit Analysis
Development Costs
Fee for program purchase $ 3600
Instructor training
Registration fee 1400
travel and lodging 975
Salary 625
Benefits (25% of salary) 156
Total development costs $ 6756
Overhead Costs
General organizational support, top management time
(10% of direct, indirect and development costs) $ 1443
Total overhead costs $ 1443

Compensation for Trainees


Trainees' salaries and benefits (based on time away from job) $ 16969
Total training costs $ 32836
Cost per trainee $ 587

Prepared by Prof. Promila Agarwal


Training Metrics

Expenditure per employee


Learning hours received per employee
Expenditure as a percentage of payroll
Expenditure as a percentage of revenue
Cost per learning hour received
Percentage of expenditure for external services
Learning hours received per training and development staff member
Average percentage of learning activities outsourced
Average percentage of learning content by content area (e.g., basic skills, customer service,
executive development)
Average percentage of learning hour provided via different delivery methods (instructor-led,
technology-based)

Prepared by Prof. Promila Agarwal


Thank You

References could be provided on request

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