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What is it? Why is it so important?

All of the management Major areas of HRM

decisions and practices that Planning for organizations, jobs, and
directly affect or influence people
the people (or human • Strategic HRM
• Human resource planning
resources) who work for the • Job analysis
Acquiring human resources
• EEO: The legal environment
All of the activities in which • Recruiting
managers engage to attract • Selection and staffing
and retain employees to Building and motivating performance
ensure that they perform at a • Training & development
• Performance management
high level and contribute to • Compensation
the accomplishment of
Maintaining human resources
organizational goals • Benefits
• Safety and health
• Labor relations
Primary components of HRM

Labor Training
relations and and
Safety/health development

Compensation Performance
and benefits appraisal

Aguinis & Kraiger (2009)

Job Analysis
Job description
and requirements

Recruiting Selection Training

Interested and New hires Orient and train new
qualified applicant possess certain hires to fully meet
KSAOs job & organizational
demands (train new
hires on KSAOs they
do not possess)
What is T&D?
Training: Teaching employees how to perform current jobs and helping
them acquire needed KSAOs (more present-focused).

Development: Building KSAOs so employees will be prepared to take on

new responsibilities and challenges (more future-focused).
Overall goal of T&D = LEARNING Don’t forget
(the acquisition of new knowledge, skills, TRANSFER
attitudes, or behaviors)

Professionals, Development
upper-level managers

Training Lower-level
managers &
Formal training &
employee development

• Human capital

Finding ways to Knowledge Informal Learner initiated; intent to

improve the creation, management learning develop; outside formal
sharing, and use of Performance improvement learning setting
knowledge Reach business goals
Explicit knowledge vs.
Tacit knowledge
Why is T&D so important?
 What are the outcomes with which
an organization is likely to be
To maintain a competitive advantage, organizations
must succeed in three domains (Salas et al., 2012):

 Finance
 Products or markets
 Human capital

Building and maintaining a more capable and better

trained workforce may offer the most sustainable advantage
 Aguinis & Kraiger (2009) say yes!
 But …

Today, more people want to see T&D impacting the

bottom line:
◦ If “all the stars align”, should see improvements in
bottom line (productivity, quality, service)
Training is based on employee and organizational needs?

Learning occurs and is transferred back to the job?

The job is strategically aligned with the organization’s needs?

Tharenou et al. (2007)

HR Outcomes
Organizational outcomes
• Attitudes &
performance • Profit and
Training outcomes financial
• Behaviors
• Performance indicators
• Human
• Productivity (ROE, ROA,
ADDIE model = Analysis, Design, Development,
Implementation, Evaluation
Development &
Needs Assessment Implementation Evaluation Validity levels
Needs assessment
• Organizational support
• Organizational
• Requirements analysis
• Task and KSA analysis
• Person analysis

Development of
Instructional objectives Training validity

Selection and
design of Transfer validity
Use of evaluation
• Individual
Conduct training
• Experimental
context Interorganizational
ADDIE model = Analysis, Design, Development,
Implementation, Evaluation
1. Training design is effective only if it helps employees
reach instructional or training goals and objectives.
2. Measurable learning objectives should be identified
before the training program begins.
3. Evaluation plays an important part in planning and
choosing a training method, monitoring the training
program, and suggesting changes to the training
design process.
 T&D process rarely follows this neat, orderly,
 Org’s sometimes require trainers to
document each step – wastes time and money
 Model implies an end point (evaluation)
 Good T&D is iterative; not a one-time event (Salas
et al., 2012)
 Companies claim to use ISD model, but dilute
its application
 U.S. organizations spend, on average, $1,228 per employee
for T&D
 On average, the dollars spent on T&D as a percentage of
payroll is 2.7%.
 On average, employees spend 32 hours/year in formal
 Average cost for providing 1 hour of formal training = $1,415
 Direct expenditures on T&D, as a percentage of payroll and
learning hours, have remained stable over the last several
years; but expenditures as a percentage of profit have
dropped since 2009.
 Use of technology-based delivery has increased, but is still
used less often than instructor-led, classroom-based training
(42% instructor-led/classroom-based; 24% blended learning;
22% online; 1% social network or mobile devices)
 Too trendy/faddish
 Too expensive
 Doesn’t transfer to the job
 Doesn’t improve the bottom line
• Economic cycles
• Globalization
• Value of intangible assets and human capital
 Focus on knowledge workers
 Employee engagement
 Change and continuous learning
• Focus on links to business strategy
• Changing demographics and diversity of workforce
 Ethnic and racial diversity
 Aging workforce
 Greater access for those with disabilities
 Generational differences
• Talent management
 Retirement of baby boomers
 Skill requirements
 Developing leadership
• Customer service and quality emphasis
• New technology
 Influence on training
 Flexibility in when/where work is performed
• High-performance work systems
 Science-practice gap
 Trendiness
 Ethics
◦ Voluntary consent
◦ Discrimination
◦ Cost effectiveness
◦ Accurate portrayal of benefits
◦ Competency in training
 Failure to conduct needs assessment or evaluation
 Changing demographics
 Increasing job complexity
 Training as a subsystem
 Training as a part of strategic management