SHRM Development

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Module 5: Training and Development
Acknowledgements ......................................................................................................................v
Welcome to the SHRM HRBP™ Learning System ................................................................... vii
Getting Started ....................................................................................................................... vii
SHRM HRBP™ Learning System Structure ......................................................................... viii
Learning System Development .............................................................................................. xi
Information about Certification ............................................................................................. xii
HR Certification Institute HRBP™ Knowledge Base ........................................................... xiii
Section 5.1: Training......................................................................................................................3

Introduction ..................................................................................................................................4
Adult Learning .............................................................................................................................4
Key Principles of Adult Learning ............................................................................................ 5
Motivation ............................................................................................................................. 10
Developing Training ..................................................................................................................15
New Employee Orientation ................................................................................................... 15
Training Analysis, Design and Development Process........................................................... 16
Cultural Learning Perceptions ....................................................................................................40
Language and Interpretation .................................................................................................. 46
Technology Trends .....................................................................................................................46
Learning Portal ...................................................................................................................... 46
Learning Management System .............................................................................................. 47
Webinar ................................................................................................................................. 47
Training and Virtual-World Simulation ................................................................................ 48
Social Networking and Web 2.0 ............................................................................................ 48
Practice Questions ......................................................................................................................50
Section 5.2: Performance Management .....................................................................................54

Introduction ................................................................................................................................55
Management of Performance in the Organization .....................................................................55
Organizational Values and Goals .......................................................................................... 55
Performance Standards .......................................................................................................... 56
Performance Management Process ........................................................................................ 57
Business Results and Employee Growth ............................................................................... 59
Organizational Support .......................................................................................................... 60
Individual Performance Appraisals ............................................................................................61
Performance Evaluation Process ........................................................................................... 62
Individual Development Plans............................................................................................... 75
Section 5.3: Career Development ...............................................................................................82

Introduction ................................................................................................................................83
Career Management ...................................................................................................................84
Managing Career Development ............................................................................................. 85
Career Development Model................................................................................................... 87
Career Development Programs .............................................................................................. 88
Individual Career Planning.........................................................................................................91
Employee Development Programs ........................................................................................ 91
Unique Employee Needs ....................................................................................................... 96
Challenges in Career Planning and Development ................................................................. 96
Developing Leaders ....................................................................................................................97
Leadership and Management ................................................................................................. 98
Leadership Theories ............................................................................................................ 100
Issues Affecting Leadership ................................................................................................ 105
Succession Planning ............................................................................................................ 106
Practice Questions ....................................................................................................................108
Bibliography .............................................................................................................................111
Index .........................................................................................................................................113
Acknowledgements
SHRM acknowledges its volunteer leaders and project team members for their valuable
contributions to the SHRM HRBP™ Learning System:
Lead Subject Matter Expert

Sameer Khanna, GPHR
Head of Human Resources, Jones Lang LaSalle, India
New Delhi, India
Subject Matter Experts
Mohamed Boraei Timo Michel

HRIS & Projects Manager, Qatar Human Resource Business Partner, OBI
Foundation Group Holding GmbH
Doha, Qatar Wermelskirchen, Germany
Brad Boyson, MS HRM, SPHR, GPHR Rachel Park

Hamptons International/Emaar Program Manager, Global Talent
Dubai, United Arab Emirates Acquisition, Mastercard Worldwide
Singapore, Singapore
Cigdem (Cheedam) Ozdemir Evren
HR Director, FNSS Defense Systems, Inc. Patchara Popaitoon
Ankara, Turkey Researcher/Teacher/Lecturer, School of
Management University of Bath
Diane M. Dowlin, CEBS, CCP, SPHR, Claverton Down, Bath, United Kingdom
GPHR
International Human Resources, Senior Aparna Rajesh, GPHR
Manager, FIS HR Projects & Resourcing Specialist,
Jacksonville, Florida Lafarge Emirates Cement
Dubai, United Arab Emirates
Arturo Gaitán Nicholls
Human Resource Analyst, Bancolombia Howard A. Wallack, GPHR
Bogota, Colombia Director, International Programs, Society for
Human Resource Management (SHRM)
Nancy Kaysarly, PHR Alexandria, Virginia
OED Advisor, Professional Integrated
Cairo, Egypt
Program Development Team
Brian Dickson Dave Lord
Chief, Organizational Programs & Strategic Instructional Designer
Partnerships Society for Human Resource Management
Society for Human Resource Management (SHRM)
(SHRM) Alexandria, Virginia
Alexandria, Virginia
Tiffany Pryor
Matthew Konetschni Manager, Curriculum Development
Director, Development and Training Society for Human Resource Management
Society for Human Resource Management (SHRM)
(SHRM) Alexandria, Virginia
Alexandria, Virginia
Cornelia Springer, CAE
Instructional Design Consultant
ePath Learning, Inc. Real Time Process Solutions, LLC
New London, Connecticut Lorton, Virginia
Welcome to the SHRM HRBP™

Learning System
Welcome to the SHRM Human Resource Business Professional (HRBP)™
Learning System! This learning system represents a significant investment in
your career. Whether you are using these materials to prepare for the HR
Certification Institute’s HRBP certification exam or to advance your professional
development, you will find that it is comprehensive and easy to use.
The HRBP certification exam was developed by the HR Certification Institute to

meet the needs of human resource professionals throughout the world while
adopting a universal perspective with respect to the human resource discipline.
Both these materials and the certification exam address human resource
management principles that transcend geographical boundaries.
The SHRM HRBP Learning System is intended to cover the Knowledge Base tested by the HR
Certification Institute certification examination. The system’s contents may not compare exactly
to the exam and some content will be tested in the exam that is not included within the learning
system. SHRM makes no claim that the use of this material guarantees passage of the HR
Certification Institute certification examination.
Getting Started
 You have already purchased and obtained this module through the Online
Learning Center. Note that the complete SHRM HRBP Learning System
is composed of six modules.
 Be sure to familiarize yourself with the Online Learning Center
(https://www.epathcampus.com/SHRM/onlinelearningcenter/login/), where
you can find all modules purchased to date, as well as additional learning
aids, practice tests, e-flashcards and case studies. If you have not already
© 2011 SHRM vii

done so, take the Online Learning Center Orientation by clicking on the
corresponding link.
 First, go to the Practice Tests on the Online Learning Center and take the
Test Your Knowledge – Readiness Test. This test will help you
determine how to focus your study and preparation.
 Next, carefully read and study this module, Module 5: Training and
Development. Return to the Online Learning Center as directed within the
module.
 When finished with this module, take the Module 5 Practice Test on the
Online Learning Center, and use the flashcards and case studies for
additional practice.
 When ready, take the HRBP Certification Practice Test on the Online
Learning Center.
 Purchase and study additional SHRM HRBP Learning System modules,
as needed.
The learning system offers many features that allow you to learn in the way that
you feel most comfortable.
SHRM HRBP™ Learning System Structure

This SHRM HRBP Learning System is not a textbook; it is a learning process.
By using all the available materials and resources, you will be well versed in the
six domains that compose the HR Certification Institute’s Knowledge Base.
The learning system consists of a set of Modules that are based on the six
domains within the HR Certification Institute’s HRBP Knowledge Base. In the
following table, the percentages represent the proportion of HRBP certification
test questions that are based on the domains.
© 2011 SHRM viii

SHRM HRBP Learning System HR Certification Institute’s Knowledge

Modules Base Domains
Module 1: HR Administration HR Administration (22%)
Module 2: Recruitment and Selection Recruitment and Selection (22%)
Module 3: Employee Relations and Employee Relations and Communication

Communication (20%)
Module 4: Compensation and Benefits Compensation and Benefits (14%)
Module 5: Training and Development Training and Development (15%)
Module 6: Health, Safety and Security Health, Safety and Security (7%)
Learning System Modules
Each section in the SHRM HRBP Learning System modules begins by stating
the behaviors and skills and knowledge from the Knowledge Base that are
addressed in that section.
In addition to the content, each module contains a variety of helpful tools,

including the following:
 Practice questions throughout to help you to check your understanding of
the content as you progress
 A bibliography that provides a list of print and Internet resources related to
the content
 An index that quickly directs you to essential topics
 Terms defined in the Glossary that display as blue text the first time the
term is used in a section
 Icons that call your attention to specific content; these icons appear as
follows:
© 2011 SHRM ix
Indicates important content to which you should pay special attention
Links to a website or suggests an additional reading source for a topic
Directs you to other portions of the SHRM HRBP Learning System, such
as other modules and sections
Directs you to the Online Learning Center.
Indicates practice questions to check your understanding of the content as

you progress through a module
Online Learning Center
As a purchaser of a SHRM HRBP Learning System module, you have access to

the Online Learning Center at:
https://www.epathcampus.com/SHRM/onlinelearningcenter/login/
This website provides a variety of resources:

 Supplementary materials
 Full HRBP knowledge base
 Case studies
 Online and printable glossary
 E-flashcards
© 2011 SHRM x
 Practice Tests
o Test your knowledge – readiness test
o Practice test for each module (with individual item feedback)
o HRBP certification practice test
Be sure that you use all the components of the SHRM HRBP Learning
System. Together the components help you learn and retain key content and
prepare for the certification exam.
Make use of the Online Learning Center at:

https://www.epathcampus.com/SHRM/onlinelearningcenter/login/
Learning System Development

The SHRM HRBP Learning System materials were developed by the Society
for Human Resource Management (SHRM) using the HR Certification Institute’s
Knowledge Base as a guide. Other than providing the Knowledge Base, the HR
Certification Institute had no role in the development of the learning system.
SHRM assembled a development team to create this learning system. The

development team included the following members:
 SHRM staff
 Subject matter experts (SMEs) from around the world
 An instructional development firm that includes content and software
developers
 Editing and word-processing specialists
Each member of the team brought a special perspective and talent to the
development effort.
Revisions to the materials are regularly scheduled to ensure that the learning
system materials are updated as the HR profession changes.
© 2011 SHRM xi
Information about Certification

Many of you have already made the decision to take the HRBP certification exam.
Others may be considering whether certification is valuable at this point in their
career. There are many reasons to consider certification, including the following:
 Professional certification establishes credibility. Earning the HRBP
credential shows that a person has mastered the HR Knowledge Base and
has remained current on HR developments through the recertification
process.
 Certification recognizes professional achievement. It is a visible reminder
to coworkers and senior management of the holder’s expertise.
 Certification elevates the status of the HR profession. As the number of
certified HR professionals grows, so does the status and prestige of the
certification.
 Certification allows you to make a greater contribution to your
organization’s success. The knowledge and visibility you gain provide you
with an opportunity to make a difference in your organization.
From a practical standpoint, there are other individual advantages:

 Certification provides a sense of personal satisfaction from undertaking and
succeeding in a difficult endeavor.
 A highly valued certification gives you a distinct advantage in the job
market. Similarly, when you are hiring, certification gives you an extra
measure of confidence in a candidate.
 Certification moves with you as you change organizations and careers.
© 2011 SHRM xii

HR Certification Institute HRBP™ Knowledge Base
At the foundation of the learning system materials and the HR Certification

Institute exam is a Knowledge Base. This Knowledge Base represents the HR
Certification Institute’s most recent study of the HR profession expressed as
behaviors, skills and knowledge required to fulfill human resource
management responsibilities that are universal and that transcend global
boundaries.
For your convenience, the Knowledge Base for Module 5: Training and
Development is provided on the following pages. The full Knowledge Base is
available in the Online Learning Center
(https://www.epathcampus.com/SHRM/onlinelearningcenter/login/) and is
also available at http://www.hrci.org.
Module 5 Knowledge Base
Below are lists of the behaviors and skills and knowledge required for mastery of
content related to Module 5: Training and Development. The percentage after
the heading represents the percentage of questions on the HRBP exam based on
the Knowledge Base domain defined by the HR Certification Institute on this
module.
© 2011 SHRM xiii

Module 5: Training and Development (15%)
Purpose Statement for Training and Development:
HR professionals in training and development should possess a combination of

behaviors and skills/knowledge that include developing and delivering basic
training programs and collecting information about training programs, such as
training needs, employee participation, and evaluation of programs. They also
include monitoring completion of the performance review process and the
preparation of development plans.
Important behaviors for training and development:
01. Develop basic training programs (for example, safety regulations, emergency preparedness,
presentation skills and time management skills)
02. Train employees for basic programs (for example, safety regulations, emergency
preparedness, presentation skills and time management skills)
03. Collect and analyze evaluations of training programs (for example, review evaluation forms,
contact trainees or supervisors after the training and ask how effective the training was)
04. Coordinate and monitor training activities (for example, cross training, re-training,
scheduling, setting up the classroom and completion of required training)
05. Collect information, analyze needs and make recommendations for training and future
development programs
06. Monitor completion of performance reviews and development plans
07. Keep records to document employee development and performance
© 2011 SHRM xiv

Important knowledge and skills for training and development:
01. Different training and learning methods (for example, e-learning, blended learning, seminars
and mentoring)
02. How to give feedback on job performance
03. Organizational culture (for example, the organization’s vision, mission, values, history,
processes and guidelines)
04. Policies and techniques for evaluating performance
05. Opportunities for training and development
06. Procedures for evaluating trainings
07. Training policies
08. Training needs assessment
09. Individual development plans
10. Performance management methods (for example, setting goals, benchmarking, 360-degree
feedback, performance incentives)
11. Training skills for basic programs
12. How to organize meetings (for example, writing agendas, inviting attendees, scheduling and
setting up rooms)
13. Career paths (for example, concepts such as opportunities for job promotion, how employees
can grow within an organization)
© 2011 SHRM xv
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© 2011 SHRM xvi

5.1: Training
This section covers the following information from the

Knowledge Base:
Behaviors: 01. Develop basic training programs (for example, safety

regulations, emergency preparedness, presentation skills and
time management skills)
02. Train employees for basic programs (for example, safety

regulations, emergency preparedness, presentation skills and
time management skills)
03. Collect and analyze evaluations of training programs (for

example, review evaluation forms, contact trainees or supervisors
after the training and ask how effective the training was)
04. Coordinate and monitor training activities (for example, cross

training, re-training, scheduling, setting up the classroom and
completion of required training)
05. Collect information, analyze needs and make recommendations

for training and future development programs
Skills & Knowledge: 01. Different training and learning methods (for example, e-learning,
blended learning, seminars and mentoring)
06. Procedures for evaluating trainings
07. Training policies
08. Training needs assessment
11. Training skills for basic programs
12. How to organize meetings (for example, writing agendas,

inviting attendees, scheduling and setting up rooms)
Source: HR Certification Institute

Section 5.1: Training
Introduction ....................................................................................................................................4
Adult Learning ...............................................................................................................................4

Key Principles of Adult Learning ................................................................................................5
Motivation ..................................................................................................................................10
Developing Training ....................................................................................................................15

New Employee Orientation ........................................................................................................15
Training Analysis, Design and Development Process ...............................................................16
Cultural Learning Perceptions ...................................................................................................40

Language and Interpretation .......................................................................................................46
Technology Trends.......................................................................................................................46
Learning Portal ...........................................................................................................................46
Learning Management System ...................................................................................................47
Webinar ......................................................................................................................................47
Training and Virtual-World Simulation .....................................................................................48
Social Networking and Web 2.0 ................................................................................................48
Practice Questions ........................................................................................................................50

Module 5: Training and Development Section 5.1: Training
Introduction
Learning occurs all the time, with or without formal training; however, formal
training speeds up the learning that is important for the organization. Training in
an organization is necessary for the following reasons:
 To teach new employees the skills they need to perform their jobs
 To teach current employees how to use a new program, process or system
 To close the gaps between an employee’s current performance and the
desired performance
 To correct performance issues
An organization may have excellent employees, but knowing what the

organization expects them to do and how they are expected to do it is the key to
their success (Dessler 2008).
This section examines:

 Adult learning principles
 Processes for developing training
 Cultural learning perceptions
 Technology trends
Keep in mind that dealing with different cultures means dealing with various
learning styles, skills, methods, environments and time schedules.
Adult Learning
When designing or selecting training, it is important to consider adult learning
principles and learning styles. They both affect the quality of the learning
experience. Before beginning the design and development of a training program,
adult learning principles must first be addressed.
© 2011 SHRM 4
Key Principles of Adult Learning

Using the basic principles of adult learning is the best place to start when
designing training programs. These principles provide a basis for how adults
learn. HR and training professionals must design their programs with the needs of
adult learners in mind. A checklist summarizing adult learning principles is shown
in Figure 1-1.
Adult Learning Principles Training Applications

 Adults want a focus on real-world  Show how participants can
issues. immediately use the learning back
on the job.
 Adults want the emphasis to be on  Apply training to current and future
how the learning can be applied. needs.
 Adult learners will come with goals  Discover the participants’
and expectations. expectations at the beginning of the
program and address those that will
not be covered.
 Allow debate and challenge of  For some participants, this
ideas, but adults must be motivated interaction enhances the learning.
to keep disagreements unheated.  Create a safe learning environment.
 Adults expect instructors to listen  Promote a learning environment that
to and respect their opinions. is collaborative between the
instructor and the participants.
 Allow participants to receive
feedback from the instructor and
each other.
 Adults will wish to be resources to  Allow for planning between the
you and to each other. instructor and the group.
 Take the knowledge and experience
of participants into account.
Figure 1-1. Checklist of Adult Learning Principles
© 2011 SHRM 5
Trainability
The principles of adult learning show that how people learn is a direct result of
their trainability. Trainability can be defined as follows:
 Willingness to learn and motivation
 Level of ability
 Perceptions of the work environment
A participant must have both the willingness to learn and the ability to achieve the
learning objectives. If either is lacking, then learning will not occur. For example,
if a graphic artist is required to attend a training program on the basics of graphic
design and has actually been very good at graphic design for several years, the
graphic artist’s motivation to attend the program will be low.
In addition, if participants feel there will be no support for their new knowledge
when they return to work, their learning will suffer.
If employees are placed in programs that they are not motivated to attend or are
not prepared to do well in, a lot of time and resources will be wasted. Participants
with a lower level of ability take longer to learn, which can increase the length of
the program and the expense involved with conducting it.
Obstacles to Learning
Every HR and training professional will meet participants who are resistant to
learning. There are many causes for this resistance, so trainers should be aware of
the following obstacles:
 Low tolerance for change. Because today’s environment is constantly
changing, organizations need to constantly adapt to keep up with the
competition. Some people accept change more readily than others. HR
professionals need to let employees know that change makes their jobs
more interesting and challenging, as well as more secure, and prepares
them for a variety of responsibilities that will increase their value as
employees in the organization.
© 2011 SHRM 6
 Lack of trust. There are some employees who do not think training is
worthwhile, or they have had negative experiences in the past. These
employees will not give the training their full attention to make it
worthwhile. One way to overcome this problem is to involve these
individuals in the design of the training. In addition, when employees see
how training fits into the overall plan, they are more likely to support the
training.
 Peer group pressure. Many employees are influenced by their coworkers’
opinions. If employees do not think a training program is valuable, their
opinions may affect others in the department. If HR professionals can find
out why negative feelings exist, they can define the goals of the program
and explain how the training will help them in their jobs.
For more information on key principles of adult learning, visit the following
website: http://www.lsaglobal.com/pdf/w_laws_of_learning.pdf.
Experiential Learning Theory
Experiential learning is the process of making meaning from direct experience.

David A. Kolb helped to promote the idea of experiential learning, drawing
heavily on the work of John Dewey, Kurt Lewin and Jean Piaget. According to
Kolb, there are four stages of learning (shown in Figure 1-2).
© 2011 SHRM 7
Figure 1-2. Experiential Learning Cycle (Kolb and Kolb 2005)
The four stages include Concrete Experience, followed by Reflection on that

experience on a personal basis. Reflection may then be followed by the
application and learning from the experience (Abstract Hypotheses) and hence to
the construction of ways of modifying the next occurrence of the experience
(Active Testing). This stage will in turn lead to the next Concrete Experience.
Learning Styles
According to Kolb’s model, the ideal learning process engages all four of these
modes in response to situational demands. In order for learning to be effective, all
four of these approaches must be incorporated. As individuals attempt to use all
four approaches, however, they tend to develop strengths in one experience-
grasping approach and one experience-transforming approach. The resulting
learning styles are combinations of the individual’s preferred approaches. These
learning styles include the following:
© 2011 SHRM 8
 Convergers are characterized by abstract conceptualization and active

experimentation. They are good at making practical applications of ideas
and using deductive reasoning to solve problems.
 Divergers tend toward concrete experience and reflective observation.
They are imaginative and are good at coming up with ideas and seeing
things from different perspectives.
 Assimilators are characterized by abstract conceptualization and reflective
observation. They are capable of taking a wide range of information and
creating a concise logical summary.
 Accommodators use concrete experience and active experimentation.
They are good at actively engaging with the world and actually doing
things instead of merely reading about and studying them (Kolb and Kolb
2005).
In the mid-1970s Peter Honey and Alan Mumford adapted David Kolb’s model
for use with middle and senior managers in business. Two adaptations were made
to Kolb’s experiential model.
First, the stages in the cycle were renamed to coincide with managerial
experiences such as decision making and problem solving. The Honey and
Mumford stages are listed here:
1. Having an experience
2. Reviewing the experience
3. Concluding from the experience
4. Planning the next steps
Second, the styles were directly aligned to the stages in the cycle and were named
as follows:
1. Activist
2. Reflector
3. Theorist
4. Pragmatist
© 2011 SHRM 9
These preferences are assumed to be acquired and adaptable rather than being
fixed personality characteristics.
Meeting the needs of all learning styles requires the use of various learning
methods. This use will help increase the rate of success for your adult learners.
The Training Analysis, Design and Development Process topic of this section
examines various learning methods.
Motivation
Motivation has a great influence on an individual’s ability to learn. Motivation is
defined as reasons that lead to specific desired behavior such as commitment to a
job or continuing efforts to achieve a goal. It is essential to understand the reasons
behind behaviors when designing a learning environment.
The best way to understand motivation is to look at three principles of human

behavior:
 People have a reason for doing what they do.
 People do things to accomplish something.
 No two people are alike, which means that no two people have exactly the
same characteristics.
Motivational Theories
The principles of human behavior can help HR professionals motivate learners to

engage in the learning process. The major motivational theories described below
look at what events affect behavior and how they affect it. These theories will
help you understand learners’ needs, goals and motives.
© 2011 SHRM 10
Maslow’s Hierarchy of Needs
Maslow’s hierarchy suggests there are five basic human needs, arranged in a
hierarchy:
1. Basic physical needs: The need to meet basic physical needs or drives.
2. Safety and security: The need to feel secure and free from threats.
3. Belonging and love: The need to belong, to be accepted, to give and
receive love.
4. Esteem: The need for respect and esteem in the eyes of oneself and others.
5. Self-actualization: The need to fulfill one’s potential, to be the best one
can be.
―The hierarchic theory is often represented as a pyramid, with the larger, lower
levels representing the lower needs and the upper point representing the need for
self-actualization (Simons, Irwin and Drinnien 1987).‖ Figure 1-3 shows
Maslow’s needs hierarchy and suggests how to fulfill these needs both on and off
the job.
Figure 1-3. Maslow’s Hierarchy of Needs
© 2011 SHRM 11
Herzberg’s Motivation-Hygiene Theory
Herzberg’s theory of work motivation says that employees have two different
categories of needs that are independent of each other and affect behavior in
different ways:
 Hygiene factors (extrinsic). Hygiene factors are those that make up the
environment in which the employees work. These factors include job
security, pay, working conditions, supervision and relations with
coworkers.
 Motivation factors (intrinsic). Motivation factors are present in the job
itself. They include opportunity for recognition, achievement and personal
growth.
McClelland’s Theory of Needs
McClelland’s theory is based on studies showing that a person’s needs are

influenced by life experiences. Some people have an intense need to achieve,
while others do not. His work identifies people with the following characteristics:
 High need for achievement (nAch):
o Create difficult but potentially achievable goals
o Prefer to work on a problem rather than leave the outcome to chance
o Are more concerned with personal achievement than with the rewards
of success
o Look for situations in which they get feedback on how well they are
doing with regard to their work
 High need for affiliation (nAff):
o Need harmonious relationships with other people
o Need to feel accepted by other people
o Conform to the norms of their workgroup
o Prefer work that provides personal interaction
o Perform well in customer service and client interaction situations
© 2011 SHRM 12
 High need for power (nPow):

o Personal: Want to direct others (often considered undesirable)
o Institutional: Want to organize the efforts of others to further the goals
of the organization
For more information on McClelland’s Theory of Needs, visit the following

website: http://www.netmba.com/mgmt/ob/motivation/mcclelland/.
Theory X and Theory Y
McGregor’s theory is based on two approaches to motivating employees:

 Theory Y managers operate with a participative style. They believe that
employees do not like rigid controls and that they naturally want to
accomplish something.
 Theory X managers operate with an authoritative style. They believe that
employees do not like to work and must be strictly controlled and forced to
work.
The Theory Y manager provides leadership to employees using motivational

techniques that produce greater satisfaction, productivity and interest in learning
than what the Theory X manager will provide.
Organizations need to consider the type of work, the work environment, the work
group size and other factors when adopting either a Theory X or Theory Y
approach.
The following website provides more information on McGregor’s Theory X and

Theory Y: http://www.netmba.com/mgmt/ob/motivation/mcgregor/.
Skinner’s Behavioral Reinforcement Theory
B. F. Skinner’s theory of behavioral reinforcement explains how principles of

behavior can be used to train people or to shape their behavior. People’s behavior
is influenced by consequences; therefore, management may influence employees’
future behavior by the way it reacts to current behavior.
© 2011 SHRM 13
Behavior modification provides employees with immediate knowledge of the

results of their behavior. Desired behavior is recognized and rewarded; undesired
behavior is ignored or punished. Using behavior modification, a facilitator may
apply the following strategies in a learning situation:
 Positive reinforcement. Giving a reward to induce desired behavior or to
encourage the person to repeat the behavior.
 Negative reinforcement. Avoiding an undesirable end result by giving the
person a reward when a desired response is displayed.
 Punishment. Responding negatively to discourage undesirable behavior.
 Extinction. Giving no response. When behavior is not reinforced
(positively, negatively or via punishment), the behavior will eventually
become nonexistent. .
Barriers to Motivation
Most people have barriers against learning and change. As much as they may
want to learn and make changes, they are held back because of certain barriers,
such as the following:
 Lack of confidence in their ability to learn or succeed at the task
 Lack of interest because there is no perceived benefit
 Lack of time or money or presence of scheduling problems
 Lack of cognitive ability needed to pay attention and remember
To see a description of GE’s Training and Development philosophy and

programs, visit the following website:
www.ge.com/citizenship/our-priorities/our-people/training-development.html.
© 2011 SHRM 14
Developing Training
New Employee Orientation
New employee orientation programs ease the transition to a new environment and
maximize the contribution of employees once they start their new assignment. In
the short term, it helps support the day-to-day functioning for new employees. In
the long term, it helps employees interact with other employees in harmony with
the organizational values.
In their book, HR Answer Book: An Indispensable Guide for Managers and

Human Resources Professionals, Shawn A. Smith and Rebecca A. Mazin
identify the following common elements for effective orientation programs:
 An explanation of organizational goals, mission and vision
 Introductions of supervisors, managers, leaders and executives (these
introductions may take the form of a pre-recorded message from
executives)
 A review of the company history, structure, and organization chart to
identify each attendee’s organizational role in the department
 Distribution of the employee handbook, with a review of crucial policies
 An introduction to and overview of any benefits plans
 A tour of the facility, perhaps with product demonstrations, a view of
manufacturing processes, or other organizational highlights
 A review of emergency, safety and security procedures
 A discussion of any outstanding logistical details, such as pay cycles and
deadlines for benefits enrollment (Smith and Mazin 2004)
Over a period of time, the orientation program enables employees to become

committed members of the organizational team. When conducted successfully, it
results in faster and greater productivity as well as engagement.
© 2011 SHRM 15
Module 2: Recruitment and Selection provides more detail on new employee

orientation.
Training Analysis, Design and Development Process

The process for developing training programs is similar to the process for
developing software or a new product or service. The process begins with an
analysis stage and proceeds through design and development. There are many
models for the training development process, but the standard and most frequently
used process is referred to as the ADDIE model.
ADDIE stands for:

 A = Analysis
 D = Design
 D = Development
 I = Implementation
 E = Evaluation
As you can see in Figure 1-4, the ADDIE model is cyclical. The success of each
phase depends on the time, effort and resources spent on the previous phase. For
example, if the analysis is skipped because members of the organization feel they
know what the problem is, the program design might not address the cultural
differences of the audience or contain the content necessary to address the most
important needs. Each phase of the ADDIE model is described in detail below.
Figure 1-4. The ADDIE Model
© 2011 SHRM 16
Needs Analysis
The first phase of the ADDIE process is needs analysis or assessment. A needs
analysis is the process used to identify and document the organization’s
developmental needs. Gaps between actual and desired performance are
identified. When those gaps suggest a lack of employee knowledge or skill,
objectives are created to address training needs.
The analysis phase can be used to identify the following:

 The organization’s goals
 Gaps between current and future performance
 Types of programs needed
 Identification of mandatory training
 Target audience
 Expected challenges and areas of potential learner resistance
 Baseline information to check effectiveness
 Limitations for cost-effective program
 Resource and logistical limitations
Sometimes organizations develop and implement programs without conducting an

analysis. Figure 1-5 summarizes various reasons that organizations choose not to
conduct needs assessments.
Reasons Organizations Do Not Conduct a Needs Analysis

 Lack of support for the needs analysis process
 Time-consuming and expensive
 Not easy to summarize findings into objective data
 Managers may prefer action over research
 Demands from senior managers sometimes take priority
 Lack of knowledge about how to conduct an analysis
Figure 1-5. Reasons Organizations Do Not Conduct a Needs Analysis
© 2011 SHRM 17
Types of Needs Analysis
A complete needs analysis will explore three types of possible development

needs: organizational, task and individual. Figure 1-6 briefly describes what is
measured in each of these three types.
Type Definition Measures
Organizational Identifies the knowledge,  Where is training needed in
skills and abilities the organization?
employees will need in the  What are the conditions
future under which training will be

conducted?
Task Compares job  What needs to be taught?
requirements with  What training is mandatory?
employee knowledge and  What must be done to
skills to identify areas that perform the job effectively?
need improvement
Individual Focuses on individual  Who should be trained?
employees and how they  What kind of training do they
perform their jobs, usually need?
during performance
reviews
Figure 1-6. Three Types of Needs Assessment
Conducting a Needs Analysis
The time spent in conducting a needs analysis differs according to the type
(shown in Figure 1-6) of assessment that is conducted. There are five basic steps
to conduct the analysis, as shown in Figure 1-7.
© 2011 SHRM 18
Figure 1-7. ADDIE Model – Needs Analysis
Step 1: Gather data to identify needs. Selecting a needs analysis strategy that
will produce high-quality information requires effort. A number of different
methods are available for collecting data. Using more than one method helps
validate the data by collecting different types of information through different
methods. For example, questionnaires provide factual information, and follow-up
interviews can explain why people answered questions as they did.
Participants should represent a cross section of the target audience and include
varying experience levels. Otherwise, the sample may not be valid, and training
may be effective only for the small part of the total population questioned.
© 2011 SHRM 19
Step 2: Decide needs that can be met by training. Training is not a solution for
employee relations problems such as poor morale or lack of motivation. Examples
of needs that can be met using training are as follows:
 How to use a new program or system
 Learning about new product information
 Learning a new sales technique
 Implementing a new or modified process
 Skill enhancement needs
Step 3: Propose solutions. After a performance/competency gap is identified and

it is decided that a training program or intervention is a potential solution, all
possible solutions should be identified and examined for their ability to address
the problem.
Step 4: Calculate potential cost of training. In this step, the value and cost of a
training program must be justified in order for it to occur. HR professionals must
identify the cost per trainee against the potential value to the organization for each
of the proposed solutions from Step 3. In calculating the cost of training,
employers also need to consider whether and when they must pay employees for
the training time.
Organizations traditionally think of training as a cost or an investment. If the

training is seen as a program that will support the vision, mission and goals of the
organization, it will have a better chance of being approved. If training programs
can show their worth, they will be viewed as an investment rather than as an
expense.
The cost of individual training programs can be figured using traditional cost
accounting principles. The steps are listed here with a simplified formula shown
in Figure 1-8:
1. Calculate the total cost of the training.
2. Divide the cost of training by the number of trainees.
© 2011 SHRM 20
Figure 1-8. Simplified Formula for Cost of Training
3. Calculate the savings or benefit (often a more difficult activity).

4. Compare the cost per trainee to the expected improvement or savings.
Step 5: Choose and implement the training. Once all costs have been calculated
and compared, it is time to select the most appropriate training program and
continue through the ADDIE model process.
Design
During the design phase of the ADDIE process, training and human resource
personnel make decisions regarding course content and structure, course goals
and objectives, delivery methods, and implementation strategies.
―Before training can be undertaken, a number of critical stages need to be

satisfied. For training and development to be the right answer is rather
dependent on first asking the correct questions. …Although training is
often thought of as a single event, in reality planned training is a
continuous process which begins with identifying the learning that is
required.‖ (Leigh 2006)
The result of the design phase is a rough outline of what the final program will
look like. All major content components are described, including the order and
method in which they will be presented. Design includes the following tasks:
 Composing goals and objectives
 Defining the target audience
 Deciding how to develop the training program
© 2011 SHRM 21
Composing Goals and Objectives
Effective instructional design is based on a concise statement of the goal of the

program and of the objectives that describe what participants will do and learn.
The goal is a clear statement, usually in one sentence, of the purpose and the
intent of the program. The goal consists of three parts:
 Who is the training for?
 What is the training about?
 Why is the training being conducted?
Objectives describe what participants will be able to do at the end of instruction,

and they provide clear reasons for teaching. Objectives should describe the
intended result of instruction, not the process of instruction itself. Objectives are
based on the goal of the program, and they should do the following:
 Provide a focus for selecting and designing instructional content
 Alert participants as to what they should know by the end of the program
 Assist in ensuring knowledge and skill transfer
 Provide a means of measuring whether participants have gained the
appropriate skills and knowledge
The purpose of objectives is to help participants, facilitators and management

make training programs more effective. The objectives should also support
performance planning initiatives and development of individual competencies.
Well-written objectives use action verbs such as identify, list, describe, define,
operate and compare as opposed to terms such as understand or learn about.
© 2011 SHRM 22
This model outlines a way to compose SMART objectives. It provides an easy

way to remember to include these five elements in each objective:
 Specific objectives outline exactly what the learner hopes to accomplish.
 Measurable objectives can be evaluated to decide whether they have been
accomplished.
 Action-oriented objectives describe the actions the learner will be able to
take.
 Realistic objectives are attainable; they are not so difficult that the learner
cannot achieve them, and they are not so simple that the learner will not be
challenged.
 Timely objectives outline actions the learner can apply immediately.
Defining the Target Audience
When conducting an initial needs analysis, the target audience is identified. When
designing the training, the target audience’s abilities, talents, prior knowledge,
skills, attitudes, motivation, perceptions and resources must be taken into account.
The principles of adult learning and learning styles are also important aspects of
program design.
Deciding How to Develop the Training Program
A key decision that must be made at the beginning of the process is whether to
develop a training program in house or to purchase it off the shelf or customized.
Figure 1-9 lists the advantages and disadvantages of in-house versus off-the-shelf
or customized programs. This information may help HR professionals decide on
the most effective way to develop the training program.
© 2011 SHRM 23
Advantages Disadvantages
In-House  Knowledge of organization’s  Development time may be

culture is useful. lengthy.
 Learning objectives can be  Training staff, if any, is often
tailored to specific needs. overloaded with administrative
 Management may buy in more duties.
quickly; trust has already been  Expertise is often not on staff.
developed.
Externally Off the Shelf Off the Shelf

Provided:  Training is immediately  Training does not always target
Off the available. specific needs.
Shelf and  Developer’s expertise is  There is usually a need for
Customized usually available to the orientation to assist in
organization to assist in understanding the corporate
tailoring the product to meet culture.
specific needs.  It may not be possible to
 It is often less expensive than customize the product.
developing in-house  It can sometimes be expensive.
programs.
Customized
Customized  It can sometimes be expensive.
 Training is designed to meet  It may require a lot of time to
specific needs of organization. develop.
 Practical applications for the
organization.
 Staff spends fewer hours away
from work.
Figure 1-9. Advantages/Disadvantages of Designing In-House or Externally Provided
© 2011 SHRM 24
When the training is purchased off the shelf, it is important to provide the
instructor with some information on the company culture. This information has
greater value if the course goals are for soft skill improvement. For teamwork and
communication skills type of training programs, the instructor should know where
the audience stands and what the current relationships are. If there is a major gap
between the current state and the requested state, the course content may be
thought of as not applicable, and resistance may occur.
Development
The third phase of the process is development. At this point, a needs analysis and
the design of goals and objectives have been successfully completed. During the
development phase, the training team makes a decision on the most appropriate
method of delivering the training. Then materials are created, purchased or
modified to meet the objectives that were created during the analysis phase.
Training Delivery Methods
Training delivery methods are the approaches for teaching the content. Delivery
methods serve two vital purposes:
 They provide a means for participants to learn the program content.
 They keep participants interested and involved, so the learning is enhanced.
When deciding which methods to use in a training program, you can ask the
following questions:
 What are the learning objectives of the program?
 What are my cost limitations?
 What is the time frame of the program?
 What equipment is available for delivering the program?
 Who is my audience?
Figure 1-10 lists several common training-delivery methods.
© 2011 SHRM 25
Delivery Method Description
Classroom training Classroom training is face-to-face training, usually led by an

instructor or facilitator. The face-to-face classroom structure allows
for the use of several learning methods, such as the following:
 Presentations and lectures
 Case studies
 Demonstrations
 Group discussions
 Simulations
Self-directed study Self-directed study, sometimes combined with other methods,

allows participants to learn at their own pace through a collection of
training materials. Here are examples of training materials:
 Workbooks
 Web-based materials
 Job aids
Figure 1-10. Training Delivery Methods (continued on next page)
© 2011 SHRM 26
E-learning E-learning is the delivery of formal and informal training and

educational materials, processes and programs using electronic
media. E-learning includes the following:
 Web-based learning
 Computer-based training (CBT)
 Virtual classrooms
E-learning can be synchronous or asynchronous.

 Synchronous: Participants interact together in real time—for
example, in a virtual classroom or for an online discussion at
a specific time.
 Asynchronous: Participants access information at different
times and in different places—for example, accessing and
completing a web-based training course.
On-the-job On-the-job training (OJT) is training provided to employees by

training managers and supervisors at the actual worksite. The instructor
uses demonstration and actual performance of job tasks to train
the employees.
Figure 1-10. Training Delivery Methods (continued on next page)
© 2011 SHRM 27
Blended learning Blended learning is an approach that includes a combination of

methods. Based on the needs of the target audience and the
learning objectives, blended learning may be more effective than
a single strategy.
―One of the most important factors in creating blended

learning solutions is to recognize where they fit in the
broader context of organizational learning and
development. …The potential of blended learning is
almost limitless and represents a naturally evolving
process from traditional forms of learning to a
personalized and focused development path‖ (Thorne and
Mackey 2007).
Combined methods may include any the following:

 Classroom
 E-learning
 Self-paced study
 Job aids
 Coaching
 On-the-job training
Figure 1-10. Training Delivery Methods (concluded)
Once the delivery method is decided, the primary activity is to create (or revise)
course materials that will be used in the training program. Sometimes an existing
course, with minor changes, may be acceptable to meet specific needs. Using
learning content that exists in the organization avoids reinventing the wheel, saves
overall cost and helps with consistency. If using content previously created is not
possible, a new course must be developed.
© 2011 SHRM 28
Presenting Small Scale Training
Many times HR is responsible for presenting training (for example, for new
hires). The following list provides suggestions on how to effectively prepare and
present small scale training:
 Provide content in small training blocks.
 Set a positive, productive tone for the training session.
 Practice active learning principles.
 Consider a variety of learning styles by using different methods of
presenting information.
 Visualize content with charts, pictures and graphs.
 Train people on skills and information that are immediately applicable on
the job.
 Engage trainees in tasks requiring action.
 Address real-life scenarios and barriers that participants believe they will
encounter when they apply the training on the job.
 Provide reference materials and job aids for review after the session.
 Assign or self-select a training partner.
 Collect feedback from the trainees after the training.
Use of Copyrighted Material
When HR and training personnel within an organization are using an existing

training program or developing a new course, keep copyrights in mind. Copyright,
enacted by most governments, gives exclusive rights to the author or creator of an
original work, including the right to copy, distribute and adapt the work.
Copyright does not protect ideas, only their expression. Rights are usually granted
for a specified and limited period of time. During the effective period, copyright
protection allows the creator of the work to control how it is used. It is essential to
remember to reference/cite any content written by another author when
developing training materials.
Copyright legislation differs from country to country. While no single law

universally extends copyright protection worldwide, a number of agreements,
© 2011 SHRM 29
treaties and conventions made between various countries provide for copyright
protection across borders.
Implementation
In the implementation phase, the program is delivered to the target audience. This
is the most visible phase in the ADDIE process. Success will be measured on the
learning that takes place during the delivery of the program. At this point, the
primary responsibility for that success is in the hands of the trainer.
The primary tasks of implementation are listed below:

 Pilot program
 Revising content
 Scheduling the program
 Announcing and executing the program
Pilot Program
A pilot program offers the program in a controlled environment with a small

sample of the target audience, including managers. The purpose of the pilot
program is to identify potential problems and assess initial effectiveness before
the program is offered to the entire target audience.
A pilot program gives HR and training personnel a chance to do the following:

 Evaluate the sequencing of the content and the level of detail
 Measure the effectiveness of the learning activities
 Assess the time allotted
 Examine the physical space in which the program will occur
 Establish support for the program from key stakeholders
The pilot program provides useful feedback and identifies potential content or
deployment problems before program launch. Feedback from the participants of
the pilot audience will be used in the next step, revising content.
© 2011 SHRM 30
Revising Content
Based on the results of the pilot program and on feedback from the pilot audience,
training personnel will revise the content and make last adjustments before final
delivery of the program. Revisions made in this phase may involve the
elimination of ineffective learning activities or changes required to give more or
less time to specific segments of the program.
Scheduling the Training Program
Organizations can be unpredictable environments, and attempting to coordinate

all the details of a training program can be challenging. The main goal is to ensure
that the participants attend training at a time when their attention will be focused
on the learning task.
Scheduling the program involves paying attention to the following aspects of the
training:
 Target audience
 Intended learning outcomes
 Deadlines for completion
 Participation at a distance
 Selecting a qualified trainer
 Logistics
Selecting a Trainer
Effective trainers have characteristics that make them suitable for leading a
training session. Trainers have different styles and different ways of leading their
sessions. The choice of trainer will be influenced by the training method and the
target audience.
© 2011 SHRM 31
Trainers can be selected on the basis of a variety of factors. Selection criteria

should be decided early in the process and be based on the cultural and learning
needs of the audience. Important factors to consider during the selection process
are listed here:
 Training expertise
 Subject matter expertise
 Consulting skills
 Credibility with the local audience
 Qualifications, education and certification
 Cultural familiarity
 Communication and language expertise
Finding all the required characteristics in one individual may be difficult. Pairing
trainers is an effective strategy that may allow for larger groups and at the same
time reduce the stress on the primary trainer.
Logistics
Before a training program is delivered, HR and training personnel must consider

the following logistics:
 Location. The location of the program can affect its effectiveness. The
choice of a training facility will depend on the target audience, the methods
and media to be used, special needs such as computer terminals or
simulation aids, the length of the program and whether the budget allows
for travel costs.
o On-site facility options may include classrooms, labs, learning centers
or conference rooms. On-site facilities are convenient and economical,
but the space must be conducive to effective training and free of job
site-related interruptions.
o Off-site training is often selected for multiday programs. A new
environment can help make participants more involved, and there will
be fewer job-related interruptions. Trainer and participant travel must
© 2011 SHRM 32
be arranged and budgeted. More administration is required to handle

the logistics.
 Equipment and environmental concerns. A number of environmental
factors must be considered to maximize learning and retention. Breaks
should also be planned to keep participants refreshed and alert. Here are
some considerations for comfortable classrooms:
o Good seating
o Acoustics
o Vision sight line
o Room temperature
o Ventilation
o Lighting
o Media equipment
 Space requirements and facility availability. Adequate space must be
available; participants must not feel crowded or uncomfortable. Different
types of training have different space requirements. For example,
interactive training such as role playing and team exercises requires more
space than presentations.
 Seating arrangements. Seating arrangements will depend on the type of
training and the size of the group. General types of seating include
classroom/theater, banquet, circle and rectangle. Figure 1-11 outlines the
advantages and disadvantages of various types of seating arrangements.
Announcing and Implementing the Program
Promoting and advertising a new training program is an effective way to increase

interest in the program. Giving participants the opportunity to preview the topics
and agenda will help increase interest, motivation, attendance and learning. This
activity may be even more important in situations where cultural or other types of
participant resistance may be expected.
© 2011 SHRM 33
Arrangement Advantages Disadvantages

 Suited for large groups  Low interaction
Classroom/theater
 Great for presentations  May be hard to hear or see
trainer
 Suited for large groups  Some participants seated with

Banquet
 Can easily be broken into back to the trainer
small groups for interaction
 Good for small interactive  Not suitable for large groups

U shape
groups

Circle
groups
 Suited for large groups  Easy for participants to feel

Chevron
 Great setup for PC-based disconnected if sitting at PC
training terminals

Rectangle
groups
Figure 1-11. Advantages and Disadvantages of Types of Seating Arrangements
© 2011 SHRM 34
Evaluation
Evaluation, the final phase of the ADDIE model, involves measuring the
effectiveness of the training. Evaluators will compare the program results to the
established objectives to decide whether the original needs were met. When
evaluating training results, evaluators will look at the following indicators:
 Participant reactions
 Retention of new information
 Application of new procedures
 Changes in behavior on the job
 Changes in organizational performance
Evaluation is such a meaningful part of the process, yet organizations often

overlook this step. Training program evaluations have the following goals:
 Determine whether a program achieved its objectives
 Identify best practices as well as the strengths and weaknesses of individual
programs
 Help the organization evaluate the cost-benefit ratio of training
 Identify which participants benefited the most and least from the training
effort
 Gather data to help design, create and market future programs.
 Decide whether the program content and learning methods were
appropriate
 Create a database of information to assist in future strategic decision
making
Transfer of Learning
When the effectiveness of the training program is measured during the evaluation
phase, HR professionals can validate their contribution to organizational goals
and objectives. Training program evaluation is also essential to the evaluation of
the transfer of learning.
© 2011 SHRM 35
Transfer of learning is the effective and continuing on-the-job application of

the knowledge and skills gained through the training experience. Learning is an
important result for human resource development programs, but the organization
needs the participant to apply the new skills and knowledge at the worksite.
Ideally, the participant will also share the new skills and knowledge with
coworkers.
Levels of Training Evaluation
There are several models for evaluating training programs. Let’s focus on the
well-known model developed by Donald L. Kirkpatrick (Kirkpatrick 1998), who
identified four levels of training evaluation. Kirkpatrick’s model focuses on
evaluating effectiveness after the program has been conducted. Figure 1-12
summarizes each of the four evaluation levels.
Level What Is Evaluated? Data-Gathering Methods
1. Reaction How participants felt about the  Checklists

program  Questionnaires (see Figure 1-13
for a sample Evaluation Form)
 Interviews
2. Learning How participants increased or  Post-measure tests

changed their knowledge, skills  Pre-/post-measure tests
and attitudes  Pre-/post-measure tests with
control group
Figure 1-12. Levels of Evaluation (continued to next page)
© 2011 SHRM 36
Level What Is Evaluated? Data-Gathering Methods
3. Behavior How participants changed their  Performance tests

behavior on the job  Critical incidents
 360-degree feedback
 Simulations
 Observations
4. Results How the program affected the  Progress toward organizational

organizational goals objectives
 Performance appraisals
 Cost-benefit analysis
 Return-on-investment analysis
Figure 1-12. Levels of Evaluation (Kirkpatrick 1998)
© 2011 SHRM 37
Figure 1-13. Training Evaluation Form
© 2011 SHRM 38
Cost-Benefit Analysis
During the fourth level of training evaluation, an organization may decide to use
the data collected at each level to complete a cost-benefit analysis, also known as
a return-on-investment (ROI) analysis, to evaluate results of the training.
Cost-benefit analysis is a financial review of various options to decide if the

benefits are greater than the costs. The organization calculates the return on
investment produced by the training. This level of analysis is usually conducted
only for 10% to 20% of all training programs because the collection and analysis
of data is usually time consuming and expensive.
Computing the return on investment of training involves the following tasks:

1. Isolating the effects of the training
2. Converting these effects (benefits) into monetary values
3. Calculating the costs of the training
4. Comparing the value of the effects to the costs of the training
The following website provides more information on calculating the ROI of a

training program:
 http://www.astd.org/NR/rdonlyres/D0BCF259-880D-4EEC-BF89-
7F1B9A88F430/0/phillips.pdf
Additional Training and Development Models
In addition to the ADDIE model, the following models may be used in many
organizations:
 Dick and Carey Design Model
 ARCS Model of Motivational Design (Keller)
 Bloom
 Gagne
© 2011 SHRM 39
Cultural Learning Perceptions

In global organizations, there are cultural considerations. To be effective within a
global organization, HR professionals must understand the effect of cultural
forces on the implementation of global strategies and on the development of local
HR practices. Being global requires that the organization be able to see the view
from inside another person’s culture and to use that awareness to create solutions.
There may be various types of cultures in a global organization. The differences

between these cultures can create conflict that will interfere with the
organization’s ability to apply its global strategic plan. HR professionals in a
global organization must therefore understand culture as being very complex with
many exceptions because there will always be individuals or groups that resist
expectations.
Geert Hofstede’s dimensions of culture originate initially from his research during
the 1970s into cultural differences at IBM subsidiaries in sixty-four countries.
They have since been researched in additional countries and in other occupations
and industries. Not all dimensions may be of the same importance in all cultures.
Hofstede’s five dimensions are listed in Figure 1-14. The table shows the effect of
Hofstede’s dimensions on the practice of global HR. The examples show the
effect of culture on the manager and on the person being managed.
© 2011 SHRM 40
Dimension Definition Impact on Manager Impact on Managed Examples
Power Extent to which less powerful Two headquarters’ managers A British training High:
distance members of organizations and demonstrate the effects of their specialist goes to  Malaysia
institutions accept unequal cultures. A Saudi manager: work for a Malaysian  Latin America
distribution of power  Remains aloof from domestic company.  Middle East
subordinates He cannot understand  China
 Tends to retain significant why his attempts to  Indonesia
projects rather than delegate offer suggestions are  India
them coldly received and
 Expects subordinates to step why he is receiving Low:
forward quickly to assume poor performance  Austria

blame when things go reviews.  Israel
wrong  Scandinavian
countries
A Danish colleague:  UK
 Enjoys sharing assignments
 US
and credit with subordinates
 Always assumes blame for
any problems
Figure 1-14. Hofstede’s Five Dimensions (continued on next page)
© 2011 SHRM 41
Individualism Degree to which individuals A US manager in a Latin The performance of a Individual:

/collectivism are integrated into groups American country plans to South Korean sales  US
 Individualism: ties are promote an individual based on force improves  Australia
loose; self-reliance valued her work on an important dramatically when  UK
 Collectivism: strong, project. incentives are  Netherlands
cohesive groups in which changed from  Italy
Other managers explain that
protection is exchanged for individual rewards to  Belgium
they use a broader range of
loyalty to group team bonuses.
factors in this decision, Collective:
including evidence of loyalty.  Latin America
 Pakistan
 Indonesia
 South Korea
 China
© 2011 SHRM 42
Uncertainty Level of tolerance of A compensation specialist Before beginning a High:

avoidance uncertainty and ambiguity; advises a Singapore company to project, a French  Greece
extent to which individuals adopt a different compensation employee of a global  Portugal
feel comfortable in plan for its sales force in Japan. nonprofit asks many  Latin America
unstructured, new or Unlike the home sales force, questions to ensure  Belgium
unexpected situations which has low base pay and perfect understanding  Japan
high commissions, the Japanese of the manager’s  France
sales representatives will expectations.
receive high base pay and lower Low:
commissions.  Singapore
 Denmark
 Sweden
 Hong Kong
 UK
© 2011 SHRM 43
Masculine/ Masculine traits: A Swedish company promotes An HR department in Masculine:

feminine  Ambitious, tendency to employee development Austria has been  Japan
polarize, preference for practices such as coaching and instructed by its  Hungary
speed and size, oriented mentoring that emphasize Danish headquarters  Austria
toward work and providing empathy and support. to start a new  Venezuela
achievement work/life balance  Italy
A manager in Japan has trouble
program. They try, but
Feminine traits: performing this part of his job. Feminine:
the program is not
 Nurturing, empathetic, well accepted or  Scandinavian
oriented toward quality of implemented locally. countries
life, striving for consensus,  Netherlands
favoring small size and  Chile
slow pace  Thailand
Note: In masculine societies,

gender roles are distinct, while
in feminine societies roles may
overlap.
© 2011 SHRM 44
Long-term/ Long-term orientation: A Chinese manager faced with A Nigerian Long-term:

short-term  Values thrift and promoting one of two Nigerian supervisor can’t  China
perseverance supervisors chooses the one understand why he  Japan
 Orders relationships by with the most tenure and best has been passed over  South Korea
status and values work attendance. for promotion in his  Brazil
observation of this Chinese-owned  India
company. He is well
Short-term orientation: placed in his Short-term:
 Values social traditions community and has  West Africa
and fulfilling social given his manager  Philippines
obligations; values being appropriate gifts.  Norway
respected  UK
 Expects reciprocation of  US
greetings, favors, gifts
Figure 1-14. Hofstede’s Five Dimensions (concluded) (Hofstede, Hofstede and Minkov 2010)
© 2011 SHRM 45
Language and Interpretation

Organizations must recognize the value of translation services for their website,
Intranet, employee communications and training programs. Specific country
legislation often specifies that all employee-related material be translated into the
local language.
Translating training programs into the local language will reduce participant
resistance and gain support. Although training and human resources professionals
may not be legally required to translate the program, the cost of taking this extra
step to ensure better participant understanding and retention is likely to be small
compared to the total investment the organization made in purchasing or
designing and developing the program.
Technology Trends
The use of technology in training has changed the methods that training
professionals use to design, deliver and administer training. Several trends related
to training program development and implementation are described here.
Learning Portal
A learning portal is an Internet or Intranet site that provides access to an
organization’s database of learning and training resources. Learning portals are
often used in conjunction with learning management systems (see below) as a
way for training professionals to manage data, provide access to internal training
programs and distribute training-related information and resources to employees.
© 2011 SHRM 46
Learning Management System

Many organizations have an electronic system called a learning management
system (LMS) or learning content management system (LCMS). The LMS and
LCMS are used for the following purposes:
 Hold course content information and web-based and computer-based
training courses
 Track and manage employee course registrations, course completion, and
scoring
 Manage career development and other employee development activities
 Repurpose content to allow multiple uses for the same content
Webinar
The Internet has made web conferencing a popular communication tool. Web
conferencing is used to conduct live meetings or to give presentations over the
Internet. In a web conference, participants sit at their own computer and are
connected to other participants via the Internet. This can be either a downloaded
application on each of the participants’ computers or a web-based application in
which the attendees enter a URL (website address) to access the conference.
A webinar is a specific type of web conference. The presenter may speak over a
standard telephone line, pointing out information being presented on the screen,
and the participants can respond over their own telephones. Webinars typically
occur in real time and are characterized by the presence of an actual, live
instructor.
The presence of an instructor and the opportunity for audience interaction has
made webinars a popular delivery choice for training and human resource
professionals. This solution provides many of the benefits of live classroom
training without many of the costs of bringing the instructor to the audience or
the audience to the instructor.
© 2011 SHRM 47
Training and Virtual-World Simulation

Computer and electronic simulations are also growing in popularity (for training,
networking, entertainment and other uses). Training-related simulations place the
learner in a virtual work environment (for example, managing an office or using a
new computer system) and present a series of real-life challenges. The learner has
the opportunity to practice new skills and make decisions in a low-risk
environment.
Here are some benefits that simulations provide:

 Appeal to young learners with sophisticated technological expectations
 Actively engage individuals in the learning process
 Provide opportunities for individuals to learn complex or dangerous skills
in a realistic but low-risk environment
Social Networking and Web 2.0

Another technological trend is the growing use of social networking sites and
social networking software to expand professional relationships. Social
networking sites are rapidly becoming valuable resources that trainers and global
HR professionals can use for multiple professional purposes, including the
following:
 Identifying and contacting potential suppliers
 Controlling learning
 Developing mentoring and professional support relationships
 Identifying and selecting potential new employees
© 2011 SHRM 48
―The advent of social platforms has challenged traditional work

constructs and can be harnessed to drive performance improvement and
enterprise excellence. With Web 2.0 technologies, it is important to
take advantage of individuals’ natural inclinations to share and learn
from one another. Instinctively, employees prefer to turn to peers and
colleagues (both virtually and face-to-face) for advice with work-
related queries and problem solving. Web 2.0 is not just about new
technology changing the way people communicate; it’s a fundamental
shift in the way people perceive learning.‖ (Haar, Michael 2010)
© 2011 SHRM 49
Practice Questions
Directions: Choose the best answer to each question.
1. What do the basic principles of adult learning provide?

a. Training needs
b. Training methods
c. Basis for how adults learn
d. Training policies
2. Which of the following does not define trainability?

a. Educated
b. Willingness to learn and motivation
c. Perceptions of the work environment
d. Level of ability
3. What type of individual is imaginative and good at coming up with ideas and seeing
things from different perspectives?
a. Convergers
b. Divergers
c. Assimilators
d. Accommodators
© 2011 SHRM 50
4. Maslow’s Hierarchy of Needs theory suggests there are five basic human needs. Which of
these needs can be fulfilled with an opportunity for growth development?
a. Esteem
b. Self-actualization
c. Belonging and love
d. Safety and security
5. Which phase of the ADDIE process identifies and documents the organization’s
developmental needs?
a. Analysis
b. Design
c. Development
d. Implementation
6. What happens during the Design phase of the ADDIE process?

a. A decision is made regarding the most appropriate method of delivering the
training, and materials are created, purchased or modified to meet the objectives.
b. The effectiveness of the training is measured.
c. The organization’s developmental needs are identified and documented.
d. Decisions are made regarding course content and structure, course goals and
objectives, delivery methods and implementation strategies.
© 2011 SHRM 51
Practice Question Answers

1. c (p. 5)
2. a (p. 6)
3. b (p. 8)
4. b (p. 11)
5. a (p. 17)
6. d (p. 21)
© 2011 SHRM 52
Training and Development Section 5.1: Training
5.2: Performance
Management

Knowledge Base:
Behaviors: 06. Monitor completion of performance reviews and development

plans
07. Keep records to document employee development and

performance
Skills & Knowledge: 02. How to give feedback on job performance
04. Policies and techniques for evaluating performance
10. Performance management methods (for example, setting goals,

benchmarking, 360-degree feedback, performance incentives)

Section 5.2: Performance Management
Introduction ..................................................................................................................................55
Management of Performance in the Organization ...................................................................55

Organizational Values and Goals ...............................................................................................55
Performance Standards ...............................................................................................................56
Performance Management Process ............................................................................................57
Business Results and Employee Growth ....................................................................................59
Organizational Support ..............................................................................................................60
Individual Performance Appraisals ...........................................................................................61

Performance Evaluation Process ................................................................................................62
Individual Development Plans ...................................................................................................75
Practice Questions ........................................................................................................................77

Module 5: Training and Development Section 5.2: Performance Management
Introduction
Performance management is the process of maintaining or improving employee
job performance. Organizations perform this process with the following methods:
 Using performance assessment tools
 Coaching and counseling
 Providing continuous feedback
This section focuses on two processes:

 Continuous management of performance within the organization
 Individual performance appraisals
Management of Performance in the

Organization
The performance management process in an organization allows employees to
talk about their performance and development goals with their managers and
create a plan for achieving those goals. Development plans and employee actions
then contribute to organizational goals and the professional growth of the
employee.
Organizational Values and Goals

Values and goals reflect organizational structure and philosophy. Executives must
come to an agreement as to the values and goals of their organization. Once they
communicate those values and goals, employees have a sense of purpose and
know where to place priorities.
© 2011 SHRM 55
Values
Management throughout the organization must display behavior that reflects the
organizational values. Values are usually expressed in the organization’s mission
statement.
Values are principles, standards, or qualities considered worthwhile or desirable.

It is important that employees always conduct business with the organization’s
values in mind. The following values are highly regarded:
 Putting the customer first
 Treating employees as well as you treat your customers
 Conducting business fairly and honestly
 Showing creativity and innovation
 Using teamwork to achieve goals
Goals
Management must also be specific about the organization’s goals. Goals are the
standards that reflect the success of the organization. By comparing
organizational goals with levels of achievement, management can get a good idea
of whether the organization is progressing at the rate desired.
Performance Standards
Performance standards are the behaviors and results that management expects of
the employees.
© 2011 SHRM 56
The HR professional needs to consider the following when creating and

communicating performance standards:
 Behaviors. What does the organization want employees to do? These
behaviors have to be translated into performance standards.
 Results. What does the organization want employees to produce?
When performance standards are communicated throughout the organization, they

must be clearly defined, so all employees understand the expected behavior.
Employees must be told what management expects for performance. This
instruction can be delivered in a number of ways:
 Orientation
 Employee handbooks
 Company or department meetings
 Newsletters
Performance Management Process

In most organizations, the performance management process includes three
phases. Each phase has a unique set of activities, considerations, and outcomes.
These phases are shown in Figure 2-1.
Figure 2-1. Phases of the Performance Management Process
© 2011 SHRM 57
Design
During the design phase of the performance management process, the following
important decisions are made:
 Who will evaluate?
 When will evaluations be completed?
 What criteria will be used?
Questions that must be answered during this phase include the following:
 Purpose
o Why do we have a performance management process?
o What do we expect from it?
 Performance criteria
o What standards will we use to evaluate employees?
 Instrumentation
o How will the evaluations be done?
o What tools will be used?
 Evaluators
o Who will complete the evaluations?
 Integration/local differentiation
o How will the process and performance standards differ in different
countries and locations?
Implementation
The implementation phase involves the following activities:

 Communicating expectations regarding job performance and how
performance will be evaluated
 Providing training in the performance management process
 Communicating the performance management process to both employees
and managers
 Providing performance incentives to motivate employees
© 2011 SHRM 58
Keeping in close contact with managers and employees during implementation is

critical. Respond quickly to questions and feedback from managers and
employees by providing solutions to recurring problems and questions if possible.
Evaluation
The evaluation phase involves identifying and evaluating the results of the
performance management process. The following outcomes are evaluated:
 Overall fit with the organization’s culture and objectives
 Fairness to employees
 Effectiveness and extent to which the process supports the organization’s
recognition and reward system
Business Results and Employee Growth

Business results. Organizations will assess the effectiveness of the performance
management system by asking certain questions:
 Are the employees’ behaviors and results what management expected?
 Is the organization progressing as planned?
The business results impact the goals and strategy of the organization. As
business goals and strategies change, the performance management system will
need to be adjusted. Business results provide value to stakeholders and may affect
the following:
 Financial earnings
 Business processes
 Quality outcomes
 Customer products or services
Employee growth. The employee brings certain knowledge and skills to the job
but will also grow professionally through experience, performance improvement
plans and organizational support. The performance management system must
include fair and meaningful recognition and rewards. Job satisfaction surveys
© 2011 SHRM 59
have shown that employees do value financial rewards, but the following
performance incentives keep employees in an organization:
 Appreciation/recognition
 Career growth opportunities
 Good manager relationships
Organizational Support
There are several ways an organization can support and enhance its performance
management system:
 Show support of performance management at the executive level.
 Encourage and promote employee engagement activities.
 Train managers in performance management.
 Hold managers accountable for their contributions to the performance
management system.
 Encourage continual feedback from managers, peers and other team
members.
 Make it clear to everyone in the organization that performance
management is more than a yearly appraisal.
 Provide necessary resources and tools.
 Communicate consistent management practices.
© 2011 SHRM 60
Individual Performance Appraisals

The typical method of measuring employees’ adherence to performance
standards and of providing feedback is the performance appraisal. Performance
appraisal is the process that measures the degree to which an employee
accomplishes work requirements.
According to Gary Dessler in his book Human Resource Management, there are
four reasons to appraise employees’ performance:
 From a practical point of view, most employers still base pay and
promotional decisions on the employee’s appraisal.
 Appraisals play an integral role in the employer’s performance
management process. It does little good to translate the employer’s
strategic goals into specific employees’ goals, if you don’t periodically
review performance.
 The appraisal lets the boss and employee establish a plan for correcting any
deficiencies and to reinforce the things the employee does right.
 Appraisals should serve a useful career planning purpose. They provide an
opportunity to review the employee’s career plans in light of his or her
exhibited strengths and weaknesses. (Dessler 2008)
© 2011 SHRM 61
What is the difference between performance management and

performance appraisal?
Performance management is the process of maintaining or improving

employee job performance. By communicating and defining performance
standards throughout the organization, development plans and employee actions
can contribute to organizational goals and the professional growth of the
employee.
Performance appraisal is the process that measures whether an employee

accomplishes work requirements.
Performance Evaluation Process

Remember, the organization’s goals are the standards that reflect the success of
the organization. Managers need to help convert the organization’s business goals,
objectives, and performance standards to individual employee goals. This
conversion is accomplished when the employee and the performance manager talk
about performance goals and create a plan for achieving those goals. This process
is called performance evaluation. Figure 2-2 shows the phases of the performance
evaluation process.
© 2011 SHRM 62
Figure 2-2. Performance Evaluation Process
The performance evaluation process is an ongoing communication process

between a manager and an employee. Together they do the following:
 Set goals.
 Meet regularly to talk about progress on projects, plans and goals.
 Update goals and plans throughout the year as needed.
 Document the results and meet to review them annually.
Setting Goals
The manager and employee decide on performance goals by considering the

following:
 Strategic planning process
 Organization’s goals and objectives
 Employee’s job description
 Past performance
 Employee’s desired accomplishments and development objectives/goals
Performance goals communicate the expected level of performance as well as

how performance will be measured in each area of the job description. Some
© 2011 SHRM 63
goals relate to the duties of the job and are easy to observe and measure. Other
goals relate to the employee’s behavior.
Observation
The coaching or mentoring that takes place between the employee and a
colleague/mentor must be consistent to ensure continual feedback to support the
employee’s performance success.
Self-Assessment and Manager Assessment
This phase includes assessment by both the employee and the manager.
Manager assessment. During the period of time between performance reviews,

the manager does the following:
 Reviews information related to employee performance
 Completes the performance evaluation form
 Obtains feedback from an HR manager and peers or subordinates
The assessment must be objective and focus on actual performance. It must also
refer back to any documentation of performance issues.
Errors and bias are described in detail in the Errors in Performance Appraisals
subsection of this module.
Two tools managers commonly use in this effort are performance logs and critical
incidents.
 Performance logs are informal notes listing examples of employee
accomplishments and/or deficiencies.
 A critical incidents tool is a record of positive and negative employee
actions.
The manager’s ability to talk objectively about issues is critical to the success of
the performance evaluation. The more a manager prepares for the evaluation
meeting, the more successful the results.
© 2011 SHRM 64
Employee’s self-assessment. Some organizations ask employees to complete a

self-assessment prior to the evaluation meeting. Employees use a performance
evaluation form to complete their self-assessment. This process advances the
dialogue between the manager and the employee.
Self-assessment and manager assessment combined. If the employee uses a

self-assessment, the evaluation is usually structured around these action areas:
 The employee provides the self-assessment.
 The manager adds comments about the employee’s assessment. Positive
comments are provided first, followed by suggestions for improvement.
 The manager and the employee talk about problems and agree on steps.
Keep in mind that performance feedback should occur frequently.
Evaluation
After the review, the manager and the employee will agree on new goals in a
separate session. The focus is now on setting goals that will affect the employee’s
future performance. It is important that the employee sees a direct connection
between his or her personal objectives and those of the organization.
Involving employees in setting their own goals is key. Being a part of the process
leads to greater acceptance. The manager can use the following approach for a
successful evaluation process:
 For long-term objectives, provide short-term milestones that help measure
progress along the way.
 Give employees the support they will need to reach their objectives (for
example, tools, training, coaching or special projects).
 Ensure that objectives do not conflict with each other.
 Follow up to see how the employee is proceeding and provide timely
feedback.
 Encourage review of successes and obstacles.
© 2011 SHRM 65
Evaluation Methods
An organization’s decisions about evaluating performance are usually influenced

by the industry in which it competes as well as by its culture. A common
approach to performance appraisal involves the employee and the direct
supervisor. Methods available for conducting an appraisal are described briefly
below.
360-Degree Feedback
In some company cultures and environments, peers may be asked to provide input
on an individual’s performance. This input may be supplied using a 360-degree
feedback approach to performance appraisal.
The 360-degree feedback approach evaluates performance using self, peers, direct
reports, management and sometimes even customers and suppliers. It benefits the
employee by providing feedback from a variety of sources and basically serves as
a development tool for altering behavior.
Benchmarking
Jon A. Christopherson, David R. Carino and Wayne E. Ferson define

benchmarking as, ―…the process of finding a quantifiable standard against which
to measure one’s performance. Benchmarking seeks to determine whether the
performance of our investment is than what we could have obtained using a
simpler or less costly investment plan.‖ (Christopherson, Carino and Ferson 2009)
Category Rating Methods
The category rating methods are the easiest to administer and understand. The
manager marks an employee’s level of performance on a designated form that is
divided into performance categories. The following are three category rating
method examples:
 Graphic scale: This method uses a five-point scale, with ratings ranging
from Exceptional to Needs Improvement.
© 2011 SHRM 66
 Checklist: Check marks are placed next to characteristics describing

employee performance.
 Force choice: Check marks are placed by two of four statements from a
combination of positive and negative statements describing what the
employee is most like and least like.
When dealing with appraisals, always consider cultural differences—grading and

scale systems are very different. People understand the rating scales from their
own experiences. Here are examples of differing rating scales:
 Eastern Europe—Russia: 1 (very bad) – 5 (very good)
 Western Europe—Germany: 1 (very good) – 5 (very bad)
 US: A (very good) – F (failed)
 Canada: Level 4 (very good) – Level 1 (passed)
At OBI, a 5-scale program has been implemented for appraisals. For more
information, visit the following website: http://www.shrmindia.org/team-effort-
helps-make-worldwide-performance-evaluations-consistent.
Comparative Methods
Comparative methods of evaluation require the manager to compare employees’

performance. The following are three comparative method examples:
 Ranking of all employees: Employees are ranked from highest to lowest
in performance.
 Paired comparison: Each employee is compared with every other
employee, one at a time.
 Forced distribution: Employee ratings are distributed on a bell curve.
© 2011 SHRM 67
Narrative Methods
Sometimes managers are required to develop narrative evaluations:

 Essay: The manager writes an essay describing the employee’s
performance.
 Critical incidents: The manager keeps a written record of positive and
negative employee actions.
Special Methods
Special appraisal methods overcome some of the difficulties associated with

appraisals:
 Management by objectives (MBO). Management by objectives (MBO) is
frequently used by managers to appraise employees. Employees help
identify objectives for themselves, defining what they intend to achieve
within a specified time period. The objectives are based on overall goals
and objectives for the organization. After the employee identifies goals and
objectives, a dialogue between the employee and the manager must take
place to ensure they both agree with the goals and objectives. The goals
and objectives must still reflect the goals of the organization.
 Behaviorally anchored rating scale (BARS). The behaviorally anchored
rating scale (BARS) method enhances the category rating. The manager
describes the employee’s behavior associated with each level of
performance. BARS works best in situations where many employees are
performing the same tasks. This method requires a lot of time and energy
to develop and maintain. In addition, different BARS must be developed to
measure employee performance for different jobs.
 Competency models. A competency model identifies the competencies
needed to perform a specific role in a job, organization or profession.
Simply put, a competency model helps define what people need to know
and to do to be successful. For several decades, business and industry have
used competency models to select and develop their employees and for
workforce planning purposes (American Society for Training and
Development 2010).
© 2011 SHRM 68
Here is an example of a typical competency model that includes behavioral

anchors as a three-rating scale:
Competency: Deadline Management
Description of three rating options:
 Exceeds expectations: Frequently provides the required performance earlier
than the schedule deadlines require. Constantly monitors critical stages in
order to ensure that projects are executed in compliance with the time
schedule.
 Meets expectations: Always completes tasks in compliance with schedules
or deadlines.
 Occasionally meets expectations: Does not achieve any on-time service
provision. Must often be reminded of compliance with deadline
specifications.
Behavioral examples for “meets expectations”:

 Fulfills tasks by the planned deadlines
 Keeps promises
 Assumes responsibility
 Initiates measures in order to ensure that schedules are adhered to.
Balanced Scorecard
The balanced scorecard is a tool used to evaluate organizational strategies. This

tool must accommodate the goals of various strategies. The balanced scorecard
approach provides a concise picture of an organization’s performance. Four key
areas are assessed in a balanced scorecard:
 Finance
 Customers
 Internal business processes
 Learning and growth
© 2011 SHRM 69
Programs should be piloted before they are formally carried out. Ideally,
scorecard use should start at the top of the organization, so people have direction
and understanding about the total organizational mission and goals.
The balanced scorecard is described in detail in Module 1: HR Administration,

Section 1.2 Gathering, Measuring and Reporting HR Data.
Additional information about the organizational use of the balanced scorecard

can be found at the website of the Balanced Scorecard Institute,
http://www.balancedscorecard.org.
Errors in Performance Appraisals
No appraisal rating method is entirely foolproof. Figure 2-3 lists some common
errors a manager may see when conducting an appraisal of employees and
assigning a rating. Performance logs may help reduce these biases.
© 2011 SHRM 70
Error Description
Halo/horn effect A halo effect may occur when an employee is extremely

competent in one area and is rated high in all categories. On the
other hand, the horn effect may occur when one weakness results
in an overall low rating.
Recency A recency error occurs when a manager gives more weight to

recent performance and ignores the employee’s earlier
performance during the appraisal period. This situation may
happen for the following reasons:
 The manager is unable to remember the employee’s
performance from eight or twelve months ago.
 Many employees may improve their performance just before
their performance review occurs.
Primacy effect A primacy effect is the tendency to pay more attention at first and
then lose attention. A manager may give more weight to the
employee’s earlier performance and ignore recent performance.
Bias When a manager’s values, beliefs or prejudices have an influence

on ratings, the error is due to bias. National origin, age, religion,
gender, appearance or other non-job-related factors may influence
the manager to alter appraisal information. HR should offer
training materials or training for managers regarding biases.
Strictness The employees of a strict manager may be performing better than

employees in other departments, but their ratings may be lower.
This error occurs when these managers believe the standards are
too low and higher the standards make these managers more
meaningful in their eyes.
Figure 2-3. Common Errors in Performance Appraisals (continued to next page)
© 2011 SHRM 71
Error Description
Leniency A leniency error is the result of managers who don’t want to give
low scores, so they give all employees high scores. If an employee
is discharged after receiving such an evaluation, the appraisal may
contradict the reason for the discharge; therefore, this type of
evaluation can cause discontent, and it may be the cause of
litigation. In addition, employees who have not received clear,
honest feedback have limited opportunity for improvement and
future success. That’s why this error does not really help the
organization or the employee who is rated.
Central tendency Central tendency errors occur when a manager rates all
employees within the same range, regardless of their differences in
actual performance.
Contrast A contrast error occurs when an employee’s rating is based on

how his or her performance compares to another employee’s
performance instead of on objective performance standards.
Although it is legitimate for an employer to rank employees and
compare them, their performance must be judged at first against
objective standards that are appropriate for them.
Figure 2-3. Common Errors in Performance Appraisals (concluded)
Appraisal Meeting
During the performance appraisal, input from both the employee and manager is
necessary for an effective appraisal. Employees need to have a clear
understanding of how they are doing in the eyes of their manager and the
organization. The appraisal meeting gives the manager an opportunity to talk
about the employee’s performance, the rationale behind strengths and weaknesses
and suggestions for future development.
© 2011 SHRM 72
Guidelines for Giving Feedback
The feedback guidelines in Figure 2-4 are helpful for the manager when giving
performance feedback.
Feedback Guidelines
Do’s Don’ts
 Do choose a time and place that allows for  Don’t focus on a specific event.
privacy and lack of interruptions. (Instead, review the entire
 Do give employees a chance to comment evaluation period.)
on their own performance (both strengths  Don’t focus only on the negative.
and weaknesses).  Don’t focus on personality issues
 Do focus first on strengths and then talk or traits that are not related to job
about areas for improvement. performance.
 Do be specific, not general. (Support  Don’t do all the talking.
feedback with factual information.)
 Do focus on job behaviors, not the person.
Figure 2-4. Feedback Guidelines
Action Planning Steps
After the review of the employee’s performance, the manager and the employee
work together to create a performance improvement plan that will help the
employee meet organizational, departmental and individual goals.
At this point in the appraisal meeting, the manager and the employee must do the
following:
 Come to an agreement on the appraisal ratings.
 Set objectives that the employee is to achieve before the next appraisal
period.
 Create a plan for how the employee will meet the objectives.
 Talk about how the manager will follow up with the employee to see that
the objectives are being met.
© 2011 SHRM 73
In addition to looking at past performance against agreed-upon objectives, the

performance appraisal is the time for the manager and the employee to talk about
the following employee needs, so they can plan for long-term development:
 Training
 Other developmental needs
 Employee strengths
 Interests/ambitions
Documentation
In some countries, good documentation can make the difference between winning
or losing a lawsuit. More importantly, good documentation plays an important
role in the overall fairness of the evaluation system. Up-to-date performance
information helps the manager explain the comments in the performance
appraisal.
Documentation of employee performance can show the reasoning that led to

positive or negative actions. Two common documentation practices include the
following:
 A performance diary is a record of incidents or tasks performed by the
employee. The manager usually keeps the diary.
 Performance records are notes that contain unit measures, quantity and
quality measures and accounting and cost measures, as they relate to the
employee.
All performance documentation must be specific, objective and accurate.

Documentation is not only valuable in protecting an organization from a lawsuit
but also can be used for the following purposes:
 Improve employee performance
 Communicate with employees
 Form the basis of training and career development activities
 Reward and recognize good performance
© 2011 SHRM 74
The following guidelines will assist managers in documentation efforts:

 Document as an event happens.
 Keep performance notes on all employees.
 Keep observations job related and be objective.
 Support your observations with facts.
 Focus on the deficiencies, not the perceived underlying cause.
 Avoid emotion; write with respect, regardless of the employee’s
performance.
 Avoid conclusions; provide facts for others to use in reaching logical
conclusions.
 Keep in mind that others may read your comments.
Individual Development Plans

An individual development plan (IDP) is a natural product of the performance
evaluation process. IDPs are a valuable performance enhancement and career
development tool. Managers who promote the use of IDPs send a clear message to
their employees that each person’s professional development is a priority.
An IDP focuses on the following:

 The employee’s skills and talents for future jobs
 New skills that will help the employee perform better on the job
It requires employees to answer the following questions:

 What direction is my organization going in the future?
 What will the organization need from its employees?
 What positions am I interested in?
 What are my goals for the next three years?
 What strengths can I build on?
 What major weakness could prevent me from reaching my goals?
Employees who are involved in a career development process are more likely to
stay with the organization. Working together, a manager and an employee can
© 2011 SHRM 75
plan ahead to meet the goals of both the employee and the organization. It is very
important that these goals are regularly monitored and that the organization
supports the employee to enable him or her to achieve these development plans.
You will read more information about individual development and career
planning in Section 5.3: Career Development.
© 2011 SHRM 76
Practice Questions
1. What are the standards that reflect the success of the organization?
a. Values
b. Goals
c. Behaviors
d. Results
2. In most organizations, the performance management process includes three phases. Which
of the following is not a phase of the performance management process?
a. Analysis
b. Design
c. Implementation
d. Evaluation
3. What are career growth opportunities, recognition and good manager relationships?
a. Goals
b. Values
c. Performance incentives
d. Performance standards
© 2011 SHRM 77
4. What is the process that measures whether an employee accomplishes work requirements?
a. Performance values
b. Performance standards
c. Performance management
d. Performance appraisal
5. Which appraisal method evaluates performance using self, peers, direct reports,
management and sometimes customers and suppliers?
a. Category rating
b. 360-degree feedback
c. Management by objectives
d. Behaviorally anchored rating scale (BARS)
6. Which performance appraisal error occurs when an employee is extremely competent in

one area and is rated high in all categories?
a. Central tendency
b. Bias
c. Horn effect
d. Halo effect
7. What plays an important role in the overall fairness of the performance evaluation system?
a. Good documentation
b. Goal setting
c. Employee’s self-assessment
d. Performance appraisal errors
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© 2011 SHRM 79

1. b (p. 56)
2. a (p. 57)
3. c (p. 60)
4. d (p. 61)
5. b (p. 66)
6. d (p. 71)
7. a (p. 74)
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5.3: Career Development

Knowledge Base:
Behaviors: 05. Collect information, analyze needs and make recommendations

for training and future development programs
07. Keep records to document employee development and

performance
Skills & Knowledge: 03. Organizational culture (for example, the organization’s vision,
mission, values, history, processes and guidelines)
13. Career paths (for example, concepts such as opportunities for job
promotion, how employees can grow within an organization)

Section 5.3: Career Development
Introduction ..................................................................................................................................83
Career Management ....................................................................................................................84

Managing Career Development .................................................................................................85
Career Development Model .......................................................................................................87
Career Development Programs ..................................................................................................88
Individual Career Planning ........................................................................................................91

Employee Development Programs .............................................................................................91
Unique Employee Needs ............................................................................................................96
Challenges in Career Planning and Development ......................................................................96
Developing Leaders ......................................................................................................................97

Leadership and Management .....................................................................................................98
Leadership Theories .................................................................................................................100
Issues Affecting Leadership .....................................................................................................105
Succession Planning .................................................................................................................106

Module 5: Training and Development Section 5.3: Career Development
Introduction
Career development looks at how employees and organizations work together to
manage the employee’s career objectives. Career development consists of two
processes—career management and career planning.
 Career management focuses on the goals of the organization. It involves
preparing, carrying out and monitoring employees’ career paths.
Employees are involved in career management activities, but the
organization provides development programs and opportunities that
support its interests, such as staffing and succession planning.
 Career planning focuses on the needs of the individual employee. It
involves the activities that employees perform to figure out the best course
of action for their career. Management and HR professionals often help
employees as they assess their skills and abilities to create a career plan.
Figure 3-1 compares the focus of career management to the focus of career
planning.
This section examines:

 Career management practices
 Individual career planning
 Methods for developing leaders
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Career Management: Career Planning:

Organizational Focus Individual Focus
 Identify future staffing needs.  Identify personal interests and
 Decide training and development abilities.
gaps around organizational needs.  Set personal career goals.
 Create professional development  Assess career path options.
programs and strategies.  Design a career plan.
 Match organizational needs with  Select professional development
individual abilities. opportunities.
 Provide access to ongoing learning  Reassess progress of career on a
opportunities to support future career regular basis; adjust career goals as
growth. needed. (Employees are responsible
for their own careers.)
Figure 3-1. Career Management versus Career Planning
Career Management
A good career management program should incorporate and align both the goals
of the business and those of the employees. If an organization ignores the personal
goals of its employees, the organization may face issues such as the ones listed
here:
 Morale problems
 Inability to match new organizational requirements with the best-qualified
candidates
 Loss of outstanding employees
The organization must balance the employees’ needs with the organizational
direction and objectives.
In addition, employees need to understand the goals of the organization to ensure

that they remain a necessary part of the organization. Training and professional
© 2011 SHRM 84
development are critical to the success of the organization and its employees.
Allowing employees to grow with the organization will benefit the organization
and the employees.
Managing Career Development

Within an organization four key players, listed below, are involved in the career
development process.
Individual Employees
Employees have the primary responsibility for their own career. In the past,
employees felt that the organization would lead them through their career;
however, the changes in the social contract between employers and employees
have made it necessary for everyone to accept responsibility. Individual
employees need to be proactive in planning their own careers but recognize that
their organization can still support them.
Managers
Managers should serve as the support link between the individual employee and
the organization. There are four roles managers can perform to assist their
employees in developing their careers:
 The coach listens, clarifies and defines employee career concerns.
 The appraiser gives feedback and explains performance standards and job
responsibilities.
 The adviser helps set goals, makes recommendations and gives advice.
 The referral agent talks to employees about action plans and links them to
available organizational resources.
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HR Professionals
To help employees achieve their career goals, HR professionals design career

paths, enlargement programs and enrichment programs. Designing a career path
involves several key steps:
 Complete a job analysis to determine the performance requirements of a
position and how they link to the organizational goals.
 Develop a natural progression of jobs that employees can follow that
require more knowledge, skills and abilities.
 Communicate potential career paths to employees through brochures,
booklets, career development workshops, meetings and other methods.
 Obtain information from employees and their managers to be entered into a
skill inventory database.
 Decide training and development needs of employees.
Organizational Leaders
The organization’s leaders need to understand the importance of supporting

organizational career development and career management. This support
promotes a focus on development and creates a more flexible workforce that can
adapt to the changing times. There are several ways that top leaders can be
involved:
 Link career development to the organization’s mission and vision.
 Clearly communicate business goals.
 Reward managers who help employees with career planning.
 Take part in career development kickoff meetings.
 Require annual review of management planning versus actual actions
taken.
© 2011 SHRM 86
Career Development Model

A career development model usually includes the following stages:
 Occupational preparation
 Organizational entry
 Early career establishment and achievement
 Mid-career
 Late career
By understanding the focus of each stage, employees can better manage their
careers as they evolve. Organizations will also be able to develop programs to
manage career transitions and to create career management systems that will meet
the needs of both the employee and the organization.
The typical stages of career development and the major tasks associated with each
stage are summarized in Figure 3-2.
Stages Major Tasks
1: Occupational preparation  Develop occupational self-image.

 Investigate alternative occupations.
 Develop initial occupational choice.
 Pursue necessary education.
2: Organizational entry  Obtain job offers from desired organizations.

 Select appropriate offer.
Figure 3-2. A Career Development Model (continued to next page)
© 2011 SHRM 87
Stages Major Tasks
3: Early career establishment  Learn job.

and achievement  Learn organizational rules.
 Fit into chosen occupation and organization.
 Increase abilities.
 Pursue career dream.
4: Mid-career  Evaluate early career plans.

 Reaffirm or modify career dream.
 Make choices appropriate to middle adult years.
 Remain productive in work.
5: Late career  Remain productive in work.

 Maintain self-esteem.
 Prepare for retirement.
 Contribute to career development of others at
earlier stages.
Figure 3-2. A Career Development Model (concluded)
Career Development Programs

Organizations can choose from a wide range of possible career development tools
and activities. Organizations with good programs have a variety of these
activities. Employee self-assessment tools and other professional development
tools are described below.
© 2011 SHRM 88
Employee Self-Assessment
Self-assessment activities usually focus on a process for employees to identify

their career goals and preferences. A self-assessment is a good first step in the
career development process, but it should not be used on its own. Self-
assessments should answer the following questions about a person’s career:
 Where am I today?
 Where do I want to be?
 What gaps do I need to fill to get there?
Types of self-assessment tools include:

 Self-study workbooks with exercises that help individuals discover their
career values, abilities and preferences
 Web-based career planning tools, including assessments, interactive
exercises and Internet resource searching capabilities
 Career planning workshops that offer support and feedback from others
Professional Development Tools
The following professional development tools will help organizations and

employees develop the skills they require to be successful:
 The International Coach Federation (ICF) defines coaching as partnering
with clients in a thought-provoking and creative process that inspires them
to maximize their personal and professional potential (International Coach
Federation 2010). Coaching involves discussions between the employee
and an experienced individual. This individual can be an HR professional,
a supervisor or a hired consultant. Types of individual coaching activities
include the following:
o Internal coaching
o External coaching
o Executive coaching
© 2011 SHRM 89
 Mentoring is a relationship between two individuals, usually a senior

colleague and a junior colleague, but usually not a supervisor. The junior
colleague receives career support and learns about the organization. The
mentor gets the chance to serve as a role model and share his or her
knowledge. The following features are included in an effective mentoring
program:
o Matching of mentor and employee based on skills/development needs
o Formal goals outlined and tracked
o Minimum time commitments
o Both parties being accountable
o Links to business strategy and goals
 Job rotation, also known as cross-training, provides employees with the
opportunity to learn diverse skills. Employees learn new job skills by
moving from job to job, usually in a lateral direction.
 Job enlargement expands the job. It adds more tasks and duties to the job,
usually at the same level of complexity.
 Job enrichment adds depth to the job. The employee has more control and
responsibility and uses good judgment as to how the job is performed.
 Employees take on increased job responsibilities, some of which are
usually at a higher level, such as supervisory.
 Employees are often given developmental assignments that allow them to
develop new skills, knowledge and abilities necessary to compete for
higher-level positions. These assignments may be in the following areas:
o Specialty areas
o Related positions
o Different organizational levels
o Different geographical sites
 Replacement planning looks for available qualified backup for crucial
management positions. These candidates are ready to assume a position
without any additional training.
© 2011 SHRM 90
 Succession planning is an ongoing process of identifying and developing

leadership that will help achieve future strategic goals. This activity
decides which employees may benefit from different organizational
experiences and identifies the training that will help them advance in the
organization. Succession planning, as compared to replacement planning, is
more concerned with long-range needs and the development of qualified
employees to satisfy those needs.
 Assessment centers consist of a standardized evaluation of behavior based
on many different activities. Job simulations are used to evaluate
candidates on behaviors related to the most critical competencies of the
job. Assessment centers may play a role in recruiting. Also referred to as
Development Centers, they are used to identify employees with potential
and to decide on their training needs.
More information on assessment centers can be found in Assessment and

Development Centres, by Iain Ballantyne and Nigel Povah.
You can find more information on career management in Career Paths: Charting
Courses to Success for Organizations and Their Employees, by Gary W. Carter,
Kevin W. Cook and David W. Dorsey.
Individual Career Planning

Individual career planning for the employee not only involves employee
development programs but also takes into consideration unique employee needs
and the challenges organizations face in career planning and development.
Employee Development Programs

Employee development programs prepare employees for future positions by
providing them with opportunities to learn new ideas and skills. Types of
employee development programs include the following.
© 2011 SHRM 91
Tuition Reimbursement Programs
Sometimes organizations offer tuition reimbursement programs to support

employees’ education and development. Most companies require that the program
attended by the employee be directly related to his or her job responsibilities.
Committee/Team Participation
If employees are involved on committees and diverse work teams, they are
exposed to group decision making, collaborative processes and other areas of the
organization. These assignments may result in the following advantages:
 Provide challenging activities
 Enrich employee knowledge
 Develop leadership capabilities
 Offer recognition and rewards
Apprenticeship
Apprenticeship usually relates to technical skills training. Employers design,

organize and manage apprenticeship programs under a set of apprenticeship
standards that include the following:
 On-the-job training outline
 Classroom instruction curriculum
 Apprenticeship operating procedures
Internal Mobility
Internal mobility in career development involves a number of activities. These

mobility options are strengthened when partnered with job enrichment and job
enlargement programs.
The Career Development Programs topic in this section describes job

enrichment and job enlargement programs.
© 2011 SHRM 92
Here are some examples of internal mobility activities:

 Promotions. A promotion is a change or increase in level. Management
and HR are responsible for developing a natural progression of jobs
whenever possible. This development will result in the following:
o Provides employees with a career path for future growth
o Enhances employee morale and motivation
o Provides the organization with candidates whose strengths and
weaknesses are known and who should already have an understanding
of the business operation
 Demotions. Sometimes employees may have advanced beyond their skills
and capabilities. If this situation occurs, they may have the opportunity to
move back or laterally to positions that are more suited to their talents and
capabilities. Demotions as a practice could vary across countries, based on
cultures. In some cultures, demotions would be very difficult. Demotions
are usually the result of the following cases:
o Staff reductions, consolidations and reorganizations
o An attempt to move an underqualified employee to a more suitable
position
o An employee’s request
 Relocations. Moving employees to another geographic location,
domestically or internationally, can be expensive and disruptive for the
company as well as for the employee; however, relocation helps the
organization as it increases the pool of employees with a global mindset.
There has been a decrease in employee willingness to accept relocations
because of issues related to work, dual-career families and the value of
family life. Here are some factors to be considered when managing such
moves:
o How will the organization benefit?
o What will be the effect on employee morale and productivity?
o What are the costs, including moving costs and possible adjustments in
compensation?
© 2011 SHRM 93
o Are there employment opportunities for the spouse?

o Is there an orientation program to adjust employees and their families
to the new location?
 Transfers. Another way to match employees’ abilities and the
organization’s staffing needs is to shift employees to other positions.
Transfers are usually considered a lateral move with no salary adjustment.
Employees sometimes seek transfers for the following reasons:
o Personal enrichment
o More interesting job
o Better hours
o Job location
o Greater possibility for advancement (Dessler 2008)
Dual-Ladder Programs
A dual-ladder career program offers two separate career paths within an

organization, one for managers and one for technical workers. The two paths offer
equal pay scales at each level.
Technical workers such as engineers, programmers and scientists often feel the
need to move into management to progress their career and take home a larger
paycheck. As a result, many skilled technical workers end up in management
positions that are administrative in nature, and their technical knowledge and
expertise are no longer used. The idea behind the dual-ladder program is to
provide an alternative method of career progression for these employees.
Figure 3-3 is a good example of a dual-ladder career path.
© 2011 SHRM 94
Figure 3-3. Dual-Ladder Career Path
Fast-Track/High-Potential (HiPo) Programs
The fast-track program searches for high-potential employees who have shown
the personal motivation and drive to excel now and in the future. The fast-track
program is expected to increase retention. It is also a good tool for succession
planning to ensure that qualified employees are available across the organization
for new business and for replacements after promotions and retirements.
After an organization identifies potential future leaders, it can use fast-track

programs to promote their development. The results of development centers and
other methods can be used to tailor development plans for each employee. The
organization must be careful that any fast-track program does not discriminate.
Everyone must have an opportunity to be considered for the program.
© 2011 SHRM 95
More information on HiPo programs can be found in the article Best and Brightest
by Dave Zielinski at the following website:
http://www.personneldecisions.com/uploadedFiles/Articles/ARTICLE_BestandBrig
htest.pdf.
Unique Employee Needs

Employee development programs must consider the unique needs of the
employees. HR professionals have the responsibility to the organization to ensure
that any special needs of employees can be met in order to help them accomplish
their goals. These needs may include any of the following:
 Employee flexible work arrangements. These may include flextime, job
sharing, telecommuting and other options.
 Alternative staffing. Nontraditional workers may include temporary,
contract, on-call and other types.
 Workplace diversity. This may include race, age, ethnicity, gender,
religion and more. Be aware of laws, regulations and practices on diversity,
which vary from country to country as well as locality to locality.
Challenges in Career Planning and Development

Even though an organization has created programs and processes for development
and retention of employees, there are always exceptions and challenges.
Plateaued Careers
One of the more challenging issues for HR professionals is dealing with

employees whose careers are not progressing in a positive direction. A challenge
for HR professionals is to maintain the commitment and productivity of long-term
employees who can no longer be promoted. HR professionals must look for ways
to achieve the following for these employees:
 Maintain and expand skills
 Recapture enthusiasm
© 2011 SHRM 96
 Maintain motivation
 Use the talents of an aging, experienced workforce
Early Retirement
Early retirement programs are often provided as an alternative to layoffs.

Organizations may offer incentives for employees to retire voluntarily if they
meet length-of-service or age requirements. Incentives generally include
additional retirement pay and other benefits.
Employers need to be careful that they do not state or even suggest that an older
employee is required to retire. The early retirement must be voluntary.
Transition Planning
Many employees who wish to retire are still interested in an opportunity to

continue to contribute to their former employer or community. Many
organizations are creating formal mentoring programs and modified work
arrangements (including part-time work and sabbaticals). This arrangement will
support their employees’ wishes to continue to contribute and benefit the
organization by keeping that knowledge in the organization.
Developing Leaders
Figure 3-4. Barry Posner Comment on Developing Leaders (Posner 2010)
© 2011 SHRM 97
HR professionals spend a good amount of time on leadership development

because organizations must recognize effective leadership characteristics,
behaviors and competencies. To drive their business success, organizations need
to do the following:
 Develop those leadership behaviors through coaching and developmental
activities
 Reward and advance employees who show those behaviors
In the leadership role, HR professionals have two responsibilities:

 Serve as leaders themselves, so they can help bring about the change
necessary to keep the organization competitive and successful
 Identify and develop leaders in the organization
Leadership and Management

Leadership is the ability of an individual to influence a group or another
individual toward the achievement of goals and results.
Management has the responsibility of coping with day-to-day operations. Good

management brings order and consistency to an organization by establishing
structures and systems to get results.
Leadership and management differ in terms of their primary functions.

 Leadership:
o Produces useful change.
o By itself never keeps an operation on time and on budget.
 Management
o By itself never creates significant, useful change.
o Creates logical results that keep something working efficiently.
© 2011 SHRM 98
Where Do Leaders Come From?
Despite the lack of much evidence, most researchers agree that leaders are both
born and made. For example, genetics and early family experiences play a
significant role in developing the following:
 Personality and character that motivate an individual to lead
 Intellectual and interpersonal skills necessary to lead
The majority of researchers today believe that the following sources may also
play a role in the development of leaders:
 Work experiences
 Hardship
 Opportunity
 Education
 Role models
 Mentors
Preparing Potential Leaders
To expand upon sources that may play a role in developing leaders, the following
are important development opportunities in the workplace that will help prepare
potential leaders:
 Challenging assignments early in a career
 Visible leadership role models
 Assignments that broaden knowledge and experience
 Mentoring or coaching from senior executives
 Attendance at meetings outside a person’s core responsibility
 Special projects
 Formal training programs
© 2011 SHRM 99
Certain types of work experiences enhance the development of leaders. A

potential leader may learn the following from challenging work assignments:
 Self-confidence and a sense of independence
 Toughness and persistence
 Knowledge of the business
 Skill in managing relationships
 Leadership and collaboration
Leadership development is a lifelong process. The leaders of today must nurture

the development of tomorrow’s leaders.
More information on leadership development can be found in Leadership

Development: Optimizing Human Capital for Business Success, by Nancy R.
Lockwood, 2006 SHRM Research Quarterly, Society for Human Research
Management, available at http://www.shrm.org/Research/Articles/.
Leadership Theories
According to Stephen R. Covey, leadership theories can be grouped into five
broad categories:
 Trait
 Behavioral
 Participative/power-influence
 Situational/contingency
 Integrative
Over the past 100 years the general trend in leadership theories has followed the
ongoing debate between what has more of an influence—nature or nurture. Early
leadership theories tended to emphasize nature (that is, the innate attributes a
person was born possessing). Over time the influence of circumstance and
experience that is nurture has proven to be increasingly influential in the
development of a leader purporting that leaders are made. The more contemporary
© 2011 SHRM 100

integrative approach to leadership theories suggest that once certain minimum

personal attributes and behaviors are established, the influences of circumstance
and experience end up having a much greater impact on the realization of the
leader’s potential. Because any engagement of specific leadership behaviors will
vary significantly depending on the actual application (such as political,
organizational, military, intellectual and family), the most successful leadership
theories today tend to be more context specific and less subject to broad
generalizations (Covey 2004).
Trait Theories
Early approaches to leadership studies concentrated on the qualities of leaders. At

that time the studies assumed that leaders were born and not made. The emphasis
was on personal characteristics such as physical and mental abilities and
personality characteristics.
Research has never identified one set of traits to identify leaders; however, five
personal characteristics seem to be related to effective leadership:
 Intelligence
 Dominance
 Self-confidence
 High levels of energy and activity
 Task-relevant knowledge
Behavioral Theories
Trait theories were popular until the 1940s. From the late 1940s through the
mid-1960s, the emphasis changed to the idea that how a person behaves shows
that person’s leadership effectiveness.
© 2011 SHRM 101

This research looked at the impact that leadership behavior of different leaders
had on the performance and satisfaction of followers. From these behavioral
studies, two leadership styles were revealed. One focuses on the employee, and
the other focuses on the job:
 Consideration, also known as employee-centered behavior, refers to
leadership behavior aimed at meeting the social and emotional needs of
individuals and group members (for example, helping individuals and
group members, explaining decisions and looking out for their best
interests).
 Initiating structure, also known as job-oriented behavior, refers to
leadership behavior aimed at careful supervision of employee work
methods and performance levels (for example, getting workers to follow
rules, clarifying roles and setting goals).
Research on these behaviors tried to predict the style that would produce the most
effective leaders. A combination of both styles seemed to be the most favorable,
but there were enough exceptions to suggest that other factors needed to be
considered.
Power-Influence/Participative Theories
This group of leadership theories tends to focus on the relationship between

formal and informal authority and the degree to which a leader chooses to engage
others by utilizing one or the other form of authority. The strength of these
theories relates to the emphasis put on engaging the group; however, the
weakness surrounds the assertion that it is the leader alone who holds the key to
engagement and that people require a certain type of leader in order to become
engaged.
Situational/Contingency Theories
No one leadership style is optimal in each and every situation. Situational and
contingency theories suggest that a successful application of leadership depends
© 2011 SHRM 102

on thoughtful consideration of the leader’s own style coupled with a specific

analysis of the circumstance and composition of the affected group.
Situational Leadership Theory
Situational leadership theories stress that leadership styles vary according to the
situation or the employees involved. A well-known situational leadership theory
is Hersey-Blanchard’s theory. This theory suggests that leadership style should be
matched to the maturity level of the employees regarding each task.
Situational leadership theory has two key aspects: task behavior and relationship
behavior.
 Task behavior is the extent to which leaders are likely to organize and
define the roles and activities of members of the group.
 Relationship behavior is the extent to which leaders are likely to maintain
personal relationships with members of the group.
Maturity is defined in relation to a specific task and has two parts:

 Psychological maturity combines self-confidence, ability and readiness to
accept responsibility.
 Job maturity combines related skills and technical knowledge.
As the employee’s maturity increases, leadership should become more

relationship motivated than task motivated. Leadership consists of four leadership
styles based on the employee’s maturity:
 Telling employees what to do
 Selling ideas to employees
 Participating with employees
 Delegating to employees
Figure 3-5 illustrates the situational leadership model.
© 2011 SHRM 103

Figure 3-5. Situational Leadership Model .
Contingency Theories
Several contingency theories were developed in the 1960s and 1970s. The most
popular and well known is the contingency model of leadership effectiveness
developed by Fred Fiedler (Fiedler 1967). This theory states that group
performance depends on the interaction between leadership style and the
situation.
Fiedler proposed there are three factors that determine the favorableness of the
leadership environment:
 How much confidence, trust and respect do followers have in their leaders?
 Are the followers’ tasks defined (that is, structured or unstructured, clear or
unclear)?
 How much power and influence does a leader have over subordinates?
Fiedler argues that certain leadership styles are more effective for certain
situations. However, rather than suggesting that leaders be trained to change their
preferred styles, he suggests that it is better to alter the situation by making
changes to one or more of the three factors listed above.
© 2011 SHRM 104

Integrative Theories
Integrative theories tend to combine or contrast the transactional elements

associated with management against the inspirational aspects associated with
leadership. This group of theories gathers together the more contemporary and
often populous work of management and leadership gurus. Integrative theories
tend to polarize between those that support systematic, deliberate and consistent
management techniques as being the required foundation for successful
leadership, in contrast with those that support a visionary if not spiritual
leadership style that inspires people to achieve results beyond their own
predetermined expectations. A common theme among these theories is the
understanding that management and leadership are two very different behaviors;
nevertheless, each behavior depends on the other in order to be optimally
effective.
Issues Affecting Leadership

Regardless of which leadership theory an organization accepts as its model, HR is
responsible for creating a culture in which leaders can succeed. Leadership style
may also be affected by the following:
 Gender differences. Individuals learn through family, places of worship,
the education system and the media to act according to their gender.
Because these behaviors are often instilled over a lifetime, they may also
affect leadership style. Although HR professionals must be aware of gender
differences, it is important not to generalize based on gender.
 Generational characteristics. Leaders must recognize that generational
differences exist and use general guidelines for planning and
communication in the organization. HR professionals must be aware of
generational differences, but they should not reach wide-ranging
conclusions based on them.
 Cross-cultural differences. Culture can also affect a person’s leadership
style. Different cultures will vary quite a bit in how they operate. Again,
© 2011 SHRM 105

HR must be aware of cultural differences without generalizing based on

culture.
 Emotional intelligence (EI). Emotional intelligence describes an
individual’s ability to be understanding of the emotions of others and to
manage his or her own emotions. The level of emotional intelligence varies
among leaders and can affect their ability to direct others and build
cooperative teams.
Succession Planning
An organization’s strategic goals can be more easily achieved if there is an
effective program for leadership succession. As introduced earlier in the Career
Development Programs topic of this section, succession planning is a talent
management strategy to help identify and promote the development of high-
potential employees.
A succession planning program decides which employees may benefit from

different organizational experiences and identifies the training they will need to
advance in the organization. Succession planning must apply to employees at all
levels of the organization, not only to senior management.
Succession planning targets long-range needs and focuses on the development of

certain qualified employees to satisfy those needs. Effective succession planning
plays an active role in encouraging employee engagement, reducing turnover and
aiding retention.
Replacement planning, also introduced in the Career Development Programs

topic of this section, concentrates on immediate needs and searches for available
qualified backups for employees in key positions.
Figure 3-6 compares succession planning and replacement planning.
© 2011 SHRM 106

Variable Succession Planning Replacement Planning
Time frame 12–36 months 0–12 months
Readiness Candidate with the best Best candidate available

development potential
Commitment Only possibilities until vacancies Selected preferred replacement

level occur candidate
Planning focus A pool of talented candidates Vertical lines of succession within

with capabilities for several units or functions
assignments
Planning Specific plans and goals set for Usually an informal status report on
development the individual strengths and weaknesses
Flexibility Flexible plans intended to Limited by plan structure; however,

promote development and has a great deal of flexibility
thinking about alternatives
Plan basis The result of input and discussion Each manager’s best judgment based
among multiple managers on observation and experience
Evaluation Multiple evaluations by different Observation of performance on the

managers on different job over time; demonstrated
assignments; testing and competence; progress through the
developing early in career unit
Figure 3-6. Succession versus Replacement Planning
© 2011 SHRM 107

Practice Questions
1. What is the focus of career management?

a. Assessing career path options
b. Setting personal career goals
c. Identifying personal interests and abilities
d. The goals of the organization
2. What is the focus of career planning?

a. Identifying future staffing needs
b. Creating professional development programs and strategies
c. The needs of the individual employee
d. Deciding training and development gaps around organizational needs
3. During the career development process, which key player designs career paths,
enlargement programs and enrichment programs?
a. Individual employee
b. HR professional
c. Manager
d. Organizational leader
© 2011 SHRM 108

4. During which stage of career development does the employee learn the job, increase
abilities and pursue career dreams?
a. Mid-career
b. Late career
c. Early career establishment
d. Organizational entry
5. What is the purpose of a dual-ladder program?

a. To provide an alternative method of career progression for employees
b. To match employees’ abilities and the organization’s staffing needs
c. To search for high-potential employees who have shown the personal motivation
and drive to excel now and in the future
d. To support employees’ education and development
6. __________ is the ability of an individual to influence a group or another individual

toward the achievement of goals and results.
a. Management
b. Leadership
c. Career development
d. Mentoring
7. Which leadership theory suggests that leadership style should be matched to the maturity
of the employees?
a. Trait
b. Contingency
c. Behavioral
d. Situational leadership
© 2011 SHRM 109


1. d (p. 83)
2. c (p. 83)
3. b (p. 86)
4. c (p. 88)
5. a (p. 94)
6. b (p. 98)
7. d (p. 103)
You have completed Module 5: Training and Development. Next, if you feel
ready, go to the Online Learning Center at
https://www.epathcampus.com/SHRM/onlinelearningcenter/login/ and check
your knowledge by completing the Case Studies, Module 5 Practice Test and the
HRBP Certification Practice Test. Also try the e-flashcards to check your
knowledge of terminology.
© 2011 SHRM 110

Module 5: Training and Development Bibliography
Haar, Michael. "How Can Web 2.0 Help

Bibliography Train Your Employees?" Mind
Resources Institute of Learning and
American Society for Training and Innovation 2, no. 2 (2010): 17.
Development. "ASTD Competency
Models." 2010. Hofstede, Geert, Gert Jan Hofstede, and
http://www.astd.org/content/research Michael Minkov. Cultures and
/competency/competencyStudy Organizations: Software of the Mind.
(accessed May 2011). New York, New York: McGraw
Hill, 2010.
Ballantyne, Iain, and Nigel Povah.
Assessment and Development International Coach Federation. "Advancing
Centres. Aldershot, United the Art, Science and Practice of
Kingdom: Gower Publishing, 2004. Professional Coaching." 2010.
http://www.coachfederation.org/
Carter, Gary W., Kevin W. Cook, and David (accessed March 2011).
W. Dorsey. Career Paths: Charting
Courses to Success for Kirkpatrick, Donald. Evaluating Training
Organizations and Their Employees. Programs: The Four Levels. San
Est Sussex, United Kingdom: Wiley- Francisco, California: Berrett-
Blackwell, 2009. Koehler Publishers, 1998.
Christopherson, Jon A., David R. Carino, Kolb, Alice Y., and David A. Kolb.
and Wayne E. Ferson. Portfolio "Learning Styles and Learning
Performance Measurement and Spaces: Enhancing Experiential
Benchmarking. New York, New Learning in Higher Education."
York: McGraw-Hill, 2009. Academy of Management Learning
& Education 4, no. 2 (2005): 193-
Covey, Stephen R. The 8th Habit: From 212.
Effectiveness to Greatness, Har/DVD
ed. New York, New York: Free Kotter, John P. A Force for Change: How
Press, 2004. Leadership Differs from
Management. New York, New York:
Dessler, Gary. Human Resource The Free Press, A Division of Simon
Management. 11th Edition. Upper & Schuster, 1990.
Saddle River, New Jersey: Pearson
Prentice Hall, 2008. Leigh, David. Group Trainer's Handbook:
Designing and Delivering Training
Fiedler, F.E. "Leader Attitudes and Group for Groups. London, United
Effectiveness." Urbana, Illinios: Kingdom: Kogan Page, 2006.
University of Illinois Press, 1967.
Posner, Barry. "Leadership Is in the
Gorman, Tom. Motivation: Spark Initiative. Moment." March 2010.
Inspire Action. Achieve Your Goal. http://www.leadershipchallenge.com/
Avon, Massachusetts: F+W WileyCDA/Section/id-420509.html
Publications, 2007. (accessed May 2011).
© 2011 SHRM 111

Module 5: Training and Development Bibliography
Simons, Janet, Donald Irwin, and Beverly Thorne, Kaye, and David. Mackey.
Drinnien. Psychology—The Search Everything You Ever Needed to
for Understanding. New York, New Know About Training, 4th ed.
York: West Publishing Company, London, United Kingdom: Kogan
1987. Page, 2007.
Smith, Shawn A., and Rebecca A. Mazin.

HR Answer Book: An Indispensable
Guide for Managers and Human
Resources Professionals. New York,
New York: AMACOM, 2004.
© 2011 SHRM 112

Module 5: Training and Development Index
Index
360-degree feedback .............. See evaluation challenges in career planning and
methods, See evaluation methods development .................................... 96–97
early retirement ..................................... 97
ADDIE model ................... 16, 19, 21, 35, 39 plateaued careers ................................... 97
transition planning ................................. 97
ADDIE process ............... See ADDIE model
coaching .......... 28, 44, 55, 64, 65, 89, 98, 99
additional training and development models
............................................................... 39 competency models ............................. 68, 69
adult learning ........................................ 4–14 cost-benefit analysis .... See evaluation phase,
basic principles ........................................ 5 See evaluation phase
obstacles to learning ............................ 6–7
Covey, Stephen ......... See leadership theories
alternative staffing ...... See unique employee
needs cross-cultural differencesSee issues affecting
leadership
appraisal meeting ................................ 72–74
action planning steps ....................... 73–74 cultural learning perceptions ............... 40–45
feedback guidelines ............................... 73 Hofstede's dimensions of culture .... 40–45
apprenticeship ....See employee development design phase ........................................ 21–25

programs composing goals and objectives ...... 21, 22
deciding how to develop the training
assessment centers .................................... 91 program .................................. 21, 23–25
defining the target audience ............ 21, 23
balanced scorecard .................................... 70 in-house versus externally provided ...... 24
SMART objectives ................................ 23
BARSSee behaviorally anchored rating scale
Dessler, Gary............... See Human Resource
basic principles of adult learning .... See adult Management
learning
development phase .............................. 25–30
behaviorally anchored rating scale (BARS) presenting small scale training .............. 29
............................................................... 68 training delivery methods ................ 25–28
use of copyrighted material ................... 30
benchmarking ............................................ 66
documentation ............................... 64, 74–75
business results.......................................... 59
performance diary ................................. 74
career development ....................... 47, 74, 75 performance records .............................. 74
career development model .................. 87–88 dual-ladder programs .............. See employee
development programs
career management ....................... 83, 84–91
© 2011 SHRM 113

early retirement ....... See challenges in career fast-track/high potential (HiPo) programsSee
planning and development employee development programs
e-learning ...................................... 27, 28, 49 Fiedler, Fred .............. See leadership theories
employee development programs ....... 91–96 Herzberg, Fredrick See motivational theories
apprenticeship........................................ 92
committee/team participation ................ 92 Hofstede, Geert .............See cultural learning
dual-ladder programs....................... 94–95 perceptions
fast-track/high potential (HiPo) programs
........................................................... 96 IDP ............ See individual development plan
internal mobility .............................. 92–94
tuition reimbursement ........................... 92 implementation phase ......................... 30–33
announcing and implementing the
employee flexible work arrangements ..... See program ........................................ 30, 33
unique employee needs logistics............................................ 30–33
pilot program ......................................... 30
employee growth ................................. 59–60 revising content ............................... 30, 31
scheduling training program............ 30, 31
employee self-assessment ................... 88, 89 selecting a trainer ............................ 31–32
errors in performance appraisals ......... 70–72 internal mobility .See employee development
bias ........................................................ 71 programs
central tendency..................................... 72
contrast error ......................................... 72 issues affecting leadership ...................... 106
halo effect .............................................. 71 cross-cultural differences .................... 106
horn effect ............................................. 71 emotional intelligence (EI) .................. 106
leniency error......................................... 72 gender differences ............................... 105
primacy effect ........................................ 71 generational characteristics ................. 105
recency error .......................................... 71 succession versus replacement planning
..................................................... 106–7
evaluation methods ............................. 66–70
360-degree feedback ............................. 66 job enlargement ................................... 90, 92
category rating methods .................. 66–67
comparative methods............................. 67 job enrichment .................................... 90, 92
narrative methods .................................. 68
special methods ............................... 68–69 job rotation ................................................ 90
evaluation phase .................................. 35, 59 Kolb, David A. .................................... 7, 8, 9

cost-benefit analysis ........................ 37, 39
language and interpretation ....................... 49
levels of training evaluation ............ 36–38
training evaluation form ........................ 38 LCMS .......See learning content management
transfer of learning ................................ 36 system
experiential learning theory .................... 7–8 leadership and management .............. 98–100
four stages of learning ............................. 7 differences ............................................. 98
preparing potential leaders ............ 99–100
face-to-face training .................................. 26
where do leaders come from?................ 99
© 2011 SHRM 114

leadership theories mission statement .. See organizational values

behavioral theories .......................... 101–2 and goals
contingency theories .................... 102, 104
Covey’s five categories ....................... 100 motivation ......... 6, 10–14, 20, 33, 93, 95, 97
Fiedler.................................................. 104 barriers to motivation ............................ 14
integrative theories .............................. 105
power-influence/participative theories 102 motivational theories ........................... 10–14
situational leadership theory.... 102, 103–4 Herzberg’s Motivation-Hygiene theory 12
trait theories ......................................... 101 Maslow's Hierarchy of Needs ............... 11
McClelland's Theory of Needs ........ 12–13
learning content management system Skinner's Behavioral Reinforcement
(LCMS) ................................................. 47 Theory.......................................... 13–14
Theory X ............................................... 13
learning management system (LMS) ........ 47 Theory Y ............................................... 13
learning portals.......................................... 46 needs analysis...................................... 23, 25

definition ............................................... 17
learning styles ........................................... 10 types of needs assessment ..................... 18
accommodators........................................ 9
activist ..................................................... 9 new employee orientation ................... 15–16
assimilators .............................................. 9
convergers ............................................... 9 OJT............................ See on-the-job training
divergers .................................................. 9
pragmatist ................................................ 9 on-the-job training (OJT) .......................... 27
reflector ................................................... 9
theorist ..................................................... 9 organizational values and goals .......... 55–56
goals ...................................................... 56
levels of training evaluation ... See evaluation mission statement .................................. 56
phase values..................................................... 56
LMS ......... See learning management system performance appraisals ....................... 37, 55
agement and performance appraisal ...... 62
management by objectives (MBO) ........... 68 definition ............................................... 61
Dessler ................................................... 61
managing career development ............ 85–86 reasons to appraise employees’
key players....................................... 85–86 performance ....................................... 61
Maslow, Abraham See motivational theories, performance evaluation process

See motivational theories critical incidents ........................ 37, 64, 68
evaluation .................................. 65, 67, 72
MBO .....See management by objectives, See manager assessment ........................ 64, 65
management by objectives observation ............................................ 64
performance logs ............................. 64, 70
McClelland, David See motivational theories self-assessment ................................ 65, 89
setting goals ........................................... 64
McGregor, Douglas.............See motivational
theories performance management ......................... 76
organizational support ........................... 60
mentoring .................... 44, 48, 64, 90, 97, 99
performance management process 55, 57–60
© 2011 SHRM 115

phases of .......................................... 57–59 training and virtual-world simulation ....... 48
performance standards 56–57, 58, 61, 62, 72, training delivery methods .. See development
85 phase
pilot program ........See implementation phase training evaluation form ......... See evaluation
phase
plateaued careers ..... See challenges in career
planning and development transfer of learning ....... See evaluation phase
professional development tools..... 88, 89–91 transition planning .. See challenges in career
planning and development
replacement planning .......... 90, 91, 106, 107
tuition reimbursement ............. See employee
return on investment (ROI) ....................... 39 development programs
ROI......................... See return on investment unique employee needs ........... 96–97, 96–97
alternative staffing ................................. 96
scheduling training program .................... See employee flexible work arrangements .. 96
implementation phase workplace diversity ............................... 96
selecting a trainer .See implementation phase use of copyrighted material See development
phase
Skinner, B. F. ........ See motivational theories
Web 2.0 ..................................................... 49
small scale training .. See development phase
webinar ...................................................... 47
SMART objectives............. See design phase
workplace diversity ..... See unique employee
social networking ...................................... 49 needs
succession planning ...................... 83, 91, 95
© 2011 SHRM 116

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LICENSE AGREEMENT FOR SHRM HRBP™ LEARNING SYSTEM STUDENT

Section 5.1: Training......................................................................................................................3

Section 5.2: Performance Management .....................................................................................54

Section 5.3: Career Development ...............................................................................................82

Lead Subject Matter Expert

Subject Matter Experts

Mohamed Boraei Timo Michel

Brad Boyson, MS HRM, SPHR, GPHR Rachel Park

Welcome to the SHRM HRBP™

The HRBP certification exam was developed by the HR Certification Institute to

© 2011 SHRM vii

SHRM HRBP™ Learning System Structure

© 2011 SHRM viii

SHRM HRBP Learning System HR Certification Institute’s Knowledge

Module 1: HR Administration HR Administration (22%)

Module 2: Recruitment and Selection Recruitment and Selection (22%)

Module 3: Employee Relations and Employee Relations and Communication

Module 4: Compensation and Benefits Compensation and Benefits (14%)

Module 5: Training and Development Training and Development (15%)

Learning System Modules

In addition to the content, each module contains a variety of helpful tools,

Indicates important content to which you should pay special attention

Links to a website or suggests an additional reading source for a topic

Directs you to the Online Learning Center.

Indicates practice questions to check your understanding of the content as

Online Learning Center

As a purchaser of a SHRM HRBP Learning System module, you have access to

This website provides a variety of resources:

Make use of the Online Learning Center at:

Learning System Development

SHRM assembled a development team to create this learning system. The

Information about Certification

From a practical standpoint, there are other individual advantages:

© 2011 SHRM xii

HR Certification Institute HRBP™ Knowledge Base

At the foundation of the learning system materials and the HR Certification

Module 5 Knowledge Base

© 2011 SHRM xiii

Module 5: Training and Development (15%)

Purpose Statement for Training and Development:

HR professionals in training and development should possess a combination of

Important behaviors for training and development:

06. Monitor completion of performance reviews and development plans

07. Keep records to document employee development and performance

© 2011 SHRM xiv

Important knowledge and skills for training and development:

02. How to give feedback on job performance

04. Policies and techniques for evaluating performance

05. Opportunities for training and development

06. Procedures for evaluating trainings

07. Training policies

08. Training needs assessment

09. Individual development plans

11. Training skills for basic programs

This page intentionally left blank.

© 2011 SHRM xvi

This section covers the following information from the

Behaviors: 01. Develop basic training programs (for example, safety

02. Train employees for basic programs (for example, safety

03. Collect and analyze evaluations of training programs (for

04. Coordinate and monitor training activities (for example, cross

05. Collect information, analyze needs and make recommendations

05. Opportunities for training and development

06. Procedures for evaluating trainings