Training to Gain a Competitive Advantage

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Training to gain a competitive advantage:

Majority of companies are starting to recognize the

important role that training plays in:

1. Improving productivity

2. Quality

3. competitiveness

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Why do companies believe that

investment in training can help them

gain a competitive advantage?

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Training can:• Increase employees’ knowledge of foreign

competitors and cultures, which is critical for success in foreign markets,

• Help ensure that employees have the basic skills to work with new technology.

• Help employees understand how to work effectively in teams to contribute to product and service quality.

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• Ensure that the company’s culture emphasizes innovation, creativity and learning.

• Ensure employment security by providing new ways for employees to contribute to the company when their jobs change, their interests change, or their skills become obsolete.

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Designing Effective Training Systems:

One of the key characteristics of training systems that

contribute to competitiveness is that they are designed

according to the instructional design process.

Instructional design process refers to a systematic

approach for developing training programs. Next page

presents the six steps of this process, which

emphasizes that effective training practices involve

more than just choosing the most popular and colorful

training method.

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Designing Effective Training Systems:1. Conducting needs assessment

• Organizational analysis• Person analysis• Task analysis

2. Ensuring employees readiness for training• Attitudes and motivation • Basic skills

3. Creating a learning environment • Identification of learning objectives and training outcomes • Meaningful material • Practice• Feedback• Observation of others• Administrating and coordinating program

4. Ensuring transfer of training• self-management strategies• Peer and manager support

5. Selecting training methods• Presentational methods• Hands-on methods• Group methods

6. Evaluating training programs• Identification of training outcomes and evaluation design• Cost-benefit analysis

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Designing Effective Training Systems:

Step 1:

Is to conduct a needs assessment,

which is necessary to determine if

training is needed.

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step 2:

Involves ensuring that employees

have the motivation and basic skills

to master training content.

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Step 3:

Involves ensuring that the training

session (or the learning environment)

has the factors necessary for

learning to occur.

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Step 4:

Involves ensuring that trainees apply the

content of training to their jobs. This involves

Support from managers and peers for the use

of training content on-the-job as well as getting

the employee to understand how to take

personal responsibility for skill improvement.

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Step 5:Involves choosing a training method. As weshall see in this chapter, a variety of trainingmethods are available ranging from traditionalon-the-job training to use of new technologies such as the Internet. The key is to choose atraining method that will provide theappropriate learning environment to achieve thetraining objectives.

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Step 6:

Involves evaluation-that is,

determining whether training

achieved the desired learning

Outcomes and/or financial

objectives.

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Designing Effective Training Systems:The first step in this process, needs assessment, refers to The process used to determine if training is necessary.Figure 1 shows the causes and outcomes resulting from needs assessment. As we see, there are many different“pressure points” that suggest that training is necessary. These Pressure points include performance problems, new technology, internal or external customer requests for training, job redesign, new legislation, changes in customerpreferences, new products or employees’ lack of basic skills.Note that these pressure points do not guarantee that training is the correct solution.

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Designing Effective Training Systems:Figure 1 The Needs Assessment Process

Reasons or “pressure points” What is the context Outcomes

•Legislation

•Lack of basic skills

•Poor performance

•New technology

•Customer requests

•New products

•Higher performance

standards

•New jobs

Organization analysis

Person analysis

Task analysis

In what do they need training

•What trainees need to learn

•Who receives training

•Type of training

•Frequency of training

•Buy-versus-build training decision

•Training versus other HR options such as selection or job redesign

Who needs training?

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Designing Effective Training Systems:

Needs assessment typically involves

organizational analysis, person

analysis, and task analysis.

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Organizational analysis involves considering the

context in which training will occur. That is,

organizational analysis involves determining

the appropriateness of training, given the

company’s business strategy, its resources

available for training, and support by managers

and peers for training activities.

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Person analysis helps to identify who needs

training. Person analysis involves (1)

determining whether performance deficiencies

result from a lack of knowledge, skill, or ability

(a training issue) or from a motivational or work-

design problem, (2) identifying who needs

training, and (3) determining employees’

readiness for training.

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Task analysis includes identifying

the important tasks and knowledge,

skill, and behaviors that need to be

emphasized in training for employees

to complete their tasks.

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Designing Effective Training Systems:

In practice, organizational analysis, person

analysis, and task analysis are usually not

conducted in any specific order. However, because

organizational analysis is concerned with identifying

whether training fits with the company’s strategic

objectives and whether the company wants to

devote time and money to training, it is usually

conducted first.

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Person analysis and task analysis are

Often conducted at the same time

because it is often difficult to determine

whether performance deficiencies are a

training problem without understanding

the task and the work environment.

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What outcomes result from a needs assessment? As

shown in 1, the needs assessment process results in

information related to who needs training and what

trainees need to learn, including the tasks in which they

need to be trained plus knowledge, skill behavior, or

other job requirements. Needs assessment helps to

determine whether the company will purchase training

from a vendor or consultant or else develop training

using internal resources.

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Organizational Analysis:Managers need to consider three factors before

choosing training as the solution to any

pressure point: the company’s strategic

direction, the training resources available, and

support of managers and peers for training

activities.

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Support of Managers and Peers:Various studies have found that peer and manager support for training is critical. The key factors tosuccess are a positive attitude among peers andmanagers about participation in training activities;managers’ and peers’ willingness to provide informationto trainees about how they can more effectively useknowledge, skills, or behaviors learned in training on thejob; and the availability of opportunities for the traineesto use training content in their job. If peers’ and managers’attitudes and behaviors are not supportive, employees are not

likelyto apply training content to their jobs.

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Company Strategy:

The importance of business strategy for a company

to gain a competitive advantage, is obvious. The

plan or goal that the company chooses to achieve

Strategic objectives has a major impact on whether

Resources (money, trainers’ time, program

development) should be devoted to addressing a

training pressure point.

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Table 1 we describes four business

strategies-concentration, internal growth,

external growth, and disinvestment. Each

strategy differs based on the goal of the

business.

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A concentration strategy focuses

on increasing market share, reducing

costs, or creating and maintaining

A market niche for products and

services.

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Company Strategy:

Southwest Airlines has a concentration

strategy. It focuses on providing short-haul,

low-fare, high-frequency air transportation. It

utilizes one type of aircraft (the Boeing 737),

has no reserved seating, and serves no meals.

This has enabled Southwest to keep costs low

and revenues high.

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An internal growth strategy focuses on new

market and product development, innovation,

and joint ventures. For example, the merger

between two auto companies, Daimler-Benz

and Chrysler, created one company with

strengths in the U.S. and international markets.

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An external growth strategy emphasizes

acquiring vendors and suppliers or buying

business that allows the company to expand

into new markets. For example, General

Electric, a manufacturer of lighting products and

jet engines, acquired the National Broadcast

Corporation (NBC), a television and

communications company.

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A disinvestment strategy

emphasizes liquidation and

divestiture of businesses. For

example, General Mills sold its

restaurant businesses including Red

Lobster.

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Company Strategy:

Preliminary research suggests a link

Between business strategy and amount and

type of training. As shown in Table 1,

training issues vary greatly from one strategy

to another.

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For example, divesting companies need to train

employees in job-search skills and focus on

cross-training remaining employees who may

find themselves in jobs with expanding

responsibilities. Companies focusing on a

market niche (a concentration strategy),

need to emphasize skill currency and

development of their existing work force.

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It is important to identify the prevailing

Business strategy to ensure that the

company is allocating enough of its budget

to training activities, that employees are

receiving training on relevant topics, and that

employees are receiving the right amount of

training.

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Company Strategy:A good example of how a training function can contribute to business strategy is evident in the changes made by SunU, thetraining and development organization of Sun Microsystems, amanufacturer of computer workstations and workstation software.SunU realigned its training philosophy and the types of trainingconducted to be more linked to the strategy of Sun Microsystems.Sun Microsystems was in a constantly evolving business due tonew technologies, products, and product markets (an internalgrowth strategy). SunU found that its customers wanted trainingservices that could be developed quickly, could train many people,and would not involve classroom training. Because of the internalgrowth strategy, Sun Microsystems was also interested inmaintaining and improving the knowledge and competence of its currentwork force.

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Acquisition and Preparation of Human Resources:Table 1 Implications of Business Strategy for Training

Strategy Emphasis How Achieved Key Issues Training Implications

Concentration •Increase market share•Reduce operating costs•Create or maintain market niche

•Improve product quality•Productivity improvement or technical process innovation•Customize products or services

•Skill currency•Development of existing work force

•Team building•Cross-training•Specialized programs•Interpersonal skill training•On-the-job training

Internal growth

•Market development•Product development•Innovation•Joint ventures

•Market existing products/add distribution channels•Global market expansion•Modify existing products•Create new or different products•Expand through joint ownership

•Creating new jobs and tasks•Innovation

•Support or promote high-quality communication of product value•Cultural training•Help in development of organizational culture that values creative thinking and analysis •Technical competence in jobs•Manager training in feedback and communication•Conflict negotiation skills

External growth (acquisition)

•Horizontal integration•Vertical integration•Concentric diversification

•Acquire firms operating at same stage in product market chain (new market access)•Acquire businesses that can supply or buy products•Acquire firms that have nothing in common with acquiring firm

•Integration•Redundancy•Restructuring

•Determine capabilities of employees in acquired firms•Integrate training systems•Methods and procedures of combined firms•Team building

Disinvestment •Retrenchment•Turnaround•Divestiture•Liquidation

•Reduce costs•Reduce assets•Generate revenue•Redefine goals•Sell off all assets

•Efficiency •Motivation, goal setting, time management, stress management, cross-training•Leadership training•Interpersonal communications•Outplacement assistance•Job-search skills training

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Company Strategy:As a result of the need to better align the training function with the needs generated by the business strategy, SunU took severalsteps. First, SunU developed a new approach to determining theknowledge and skills that the employees needed to meet businessgoals. SunU identified several basic competencies (such as customerrelations). A team of trainers at SunU constantly reviews thesecompetencies and discusses them with key senior managers. Forexample, in the customer service competency, vice presidents anddirectors of sales and marketing are interviewed to identify training needs.As a result of this process SunU learned more about the business needsand was able to develop relevant training. To help deliver training quicklyto a large number of trainees without relying on the classroom, SunUdeveloped videoconferencing programs that allow training to be deliveredsimultaneously to several sites without requiring trainees to travel to acentral location.

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Company Strategy:

To help maintain and improve the knowledge

and abilities of its employees, SunU developed

a desktop library that enables all employees to

access CD-ROMs containing up-to-date

information on technologies and products as

well as profiles on customers and competitors.

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Training Resources:

It is necessary to identify whether the company

has the budget, time, and expertise for training.

For example, if the company is installing

computer-based manufacturing equipment in

one of its plants, it has three possible strategies

for dealing with the need to have computer-

literate employees.

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First, the company can decide that

given its staff expertise and budget, it

can use internal consultants to train

all affected employees.

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Second, the company may decide that it is more cost-

effective to identify employees who are computer-

literate by using tests and work samples. Employees

who fail the test or perform below standards on the work

Sample can be reassigned to other jobs. Choosing this

strategy suggests that the company has decided to

devote resources to selection and placement rather

than training.

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Training Resources:

Third, because it lacks time or expertise, the

company may decide to purchase training from

a consultant.

Many companies identify vendors and

consultants who can provide training services

by using requests for proposals.

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A request for proposal (RFP) is a document that outlines for potential vendors and consultants the type of service theCompany is seeking, the type and number of referencesneeded, the number of employees who need to be trained,funding for the project, the follow-up process used to determine level of satisfaction and service, expected date of completion of the project, and the date When proposals mustbe received by the company. The request for proposal maybe mailed to potential consultants and vendors or posted onthe company’s Web site.

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Training Resources:

The request for proposal is valuable because it

provides a standard set of criteria against which

all consultants will be evaluated. The RFP also

helps eliminate the need to evaluate outside

vendors who cannot provide the needed

services.

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Usually the RFP helps to identify several vendors who meet the criteria. The next step is to choose the preferredprovider. Table 2 provides examples of questions to askvendors.When using a consultant or other outside vendor to provideTraining services, it is also important to consider the extent towhich the training program will be customized based on thecompany’s needs or whether the consultant is going toprovide training services based on a generic framework thatit applies to many different organizations.

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Training Resources:Table 2 Questions to Ask Vendors and Consultants

How much and what type of experience does your company have in designing and delivering training?

What are the qualifications and experiences of your staff?

Can you provide demonstrations or examples of training programs you have developed?

Would you provide references of clients for whom you worked?

What evidence do you have that your programs work?

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Training Resources:

How long should you expect it would take a vendor

Or consultant to develop a training program? The

Answer is “It depends”. Some consultants estimate

That development time ranges from 10 to 20 hours

for each hour of instruction. Highly technical

content requiring more frequent meeting with

subject matter experts can add an additional 50

percent more time.

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Training Resources:

For training programs using new technology

(such as a CD-ROM) development time can

range from 300 to 1,000 hours per hour of program time

depending on how much animation, graphics video, and

audio are included, how much new content needs to be

developed, the number of practice exercises and type of

feedback to be provided to trainees, and the amount of

“branches” to different instructional sequences.

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Person Analysis:Person analysis helps the manager identify whethertraining is appropriate and which employees needtraining. In certain situations, such as the introductionof a new technology or service, all employees may needtraining. However, when managers, customers, oremployees identify a problem (usually as a result of aperformance deficiency), it is often unclear whethertraining is the solution.A major pressure point for training is poor or substandardperformance-that is, there is a gap between employees’ currentperformance and their expected performance.

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Person Analysis:Poor performance is indicated by customer complaints, low performance ratings, or on-the-job incidents such asaccidents and unsafe behavior. Another potentialindicator of the need for training is if the job changessuch that current performance levels need to beimproved or employees must be able to complete newtasks.Figure 2 shows the factors that influence employees’performance and learning. These factors includeperform characteristics, input, output, consequences,and feedback.

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Person Analysis:Figure 2 Factors That Influence Employee Performance and LearningPerson Characteristics•Ability and skill•Attitudes and motivation

Input•Understand need to perform•Necessary resources (equipment, etc.)•Interference from other job demands•Opportunity to perform

Performance

And Learning

Output•Standard to judge successful performers

Consequences•Positive consequences/incentives to perform•Few negative consequences to perform

Feedback•Frequent and specific feedback about how the job is performed

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Person Analysis:Person characteristics refer to the employees knowledge, skill, ability, and attitudes. Input relates to the instructions that tellemployees what, how, and when to perform. Input also refers tothe support that the employees are given to help them perform.This support includes resources such as equipment, time, orbudget. Support also includes feedback and reinforcement frommanagers and peers. Output refers to the job’s performancestandards. Consequences refer to the type of incentives thatemployees receive for performing well. Feedback refers to theinformation that employees receive while they are performing.From a manager’s perspective, to determine if training is needed,for any performance problem you need to analyze characteristics

ofthe performer, input, output, consequences, and feedback.

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Person Analysis:How might this be done? Based on the model in Figure 2, you should ask several questions to determine if training is thelikely solution to a performance problem. Assess whether:1. The performance problem is important and has the

potential to cost the company a significant amount of money from lost productivity or customers.

2. Employees do not know how to perform effectively. Perhaps they received little or no previous training or the training was ineffective. (This problem is a characteristic of the person.)

3. Employees cannot demonstrate the correct knowledge or behavior. Perhaps they were trained but they infrequently or never used the training content (knowledge, skills, etc.) on the job. (This is an input problem).

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Person Analysis:4. Performance expectations are clear (input) and there are no

obstacles to performance such as faulty tools or equipment.5. There are positive consequences for good performance, while poor

performance is not rewarded. For example, if employees are dissatisfied with their compensation, their peers or a union may encourage them to slow down their pace of work. (This involves consequences).

6. Employees receive timely, relevant, accurate, constructive, and specific feedback about their performance (a feedback issue).

7. Other solutions such as job redesign or transferring employees to other jobs are too expensive or unrealistic.

If employees lack the knowledge and skill to perform and the other factors are satisfactory, training is needed. If employees have the knowledge andskill to perform, but input, output, consequences, or feedback areinadequate, training may not be the best solution.

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Person Analysis:

For example, if poor performance results from

faulty equipment, training cannot solve this

problem, but repairing the equipment will! If

poor performance results from lack of feedback,

then employees may not need training, but their

managers may need training on how to give

performance feedback!

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Task Analysis

Task analysis results in a description of work

activities, including tasks performed by the

employee and the knowledge, skills, and

abilities required to successfully complete the

tasks. A task is a statement of an employee’s

work activity in a specific job. There are four

steps in task analysis:

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Task Analysis1. Select the job(s) to be analyzed.2. Develop a preliminary list of tasks performed on the job by

interviewing and observing expert employees and their managers and talking with others who have performed a task analysis.

3. Validate or confirm the preliminary list of tasks. This involves having a group of subject matter experts (job incumbents, managers, etc.) answer in a meeting or on a written survey several questions regarding the tasks. The types of questions that may be asked include the following: How frequently is the task performed? How much time is spent performing each task? How important or critical is the task for successful performance of the job? How difficult is the task to learn? Is performance of the task expected of entry-level employees?

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Task AnalysisTable 3 presents a sample task analysis questionnaire. Thisinformation is used to determine which tasks will be focused onin the training program. The person or committee conductingthe needs assessment must decide the level of ratings acrossdimensions that will determine that a task should be included inthe training program. Tasks that are important, frequentlyperformed, and of moderate-to-high levels of difficulty shouldbe trained. Tasks that are not important and are infrequentlyperformed will not be trained. It is difficult for managers and trainersto decide if tasks that are important, are performed infrequently, andrequire minimal difficulty should be included in training. Managers andtrainers must determine whether important tasks-regardless of howfrequently they are performed or their level of difficulty-will be includedin training.

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Task Analysis

4. Once the tasks are identified, it is important to identify the knowledge, skills, or abilities necessary to successfully perform each task. This information can be collected using interviews and questionnaires.

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Task AnalysisTable 3 Sample Task Statement Questionnaire

Name Date

Position

Please rate each of the task statements according to three factors: the importance of the task for effective performance, how frequently the task is performed, and the degree of difficulty required to become effective in the task. Use the following scales in making your ratings.

Importance Frequency

4 = Task is critical for effective performance.

3 = Task is important but not critical for effective

performance.

2 = Task is of some importance for effective

performance.

1 = Task is of no importance for task performance.

0 = Task is not performed

4 = Task is performed once a day.

3 = Task is performed once a week.

2 = Task is performed once every few months.

1 = Task is performed once or twice a year.

0 = Task is not performed.

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Task AnalysisTable3 Sample Task Statement Questionnaire

Difficulty

4 = Effective performance of the task requires extensive prior experience and/or training (12-18 months or longer).

3 = Effective performance of the task requires minimal prior experience and training (6-12 months).

2 = Effective performance of the task requires a brief period of prior training and experience (1-6 months).

1 = Effective performance of the task does not require specific prior training and/or experience.

0 = This task is not performed.

Task Importance Frequency Difficulty

1. Ensuring maintenance on equipment, tools, and safety controls

2. Monitoring employee performance

3. Schedule employees

4. Using statistical software on the computer

5. Monitoring changes made in processes using statistical methods

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Task AnalysisInformation concerning basic skill and cognitive ability requirements is critical for determining if certain levelsof knowledge, skills, and abilities will be prerequisitesfor entrance to the training program (or job) or ifsupplementary training in underlying skills is needed.For training purposes, information concerning howdifficult it is to learn the knowledge, skill, or ability isimportant-as is whether the knowledge, skill, or ability isexpected to be acquired by the employee before takingthe job.

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Example of a Task Analysis:Each of the four steps of a task analysis can beseen in this example from a utility company.Trainers were given the job of developing atraining system in six months. The purpose ofthe program was to identify tasks and knowledge, skills, abilities, and otherconsiderations that would serve as the basis fortraining program objectives and lesson plans.

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Example of a Task Analysis:The first phase of the project involved identifying potential tasks for each job in the utility’s electrical maintenance area. Procedures, equipmentlists, and information provided by subject matter experts (SMEs) wereused to generate the tasks. SMEs included managers, instructors, andsenior technicians. The tasks were incorporated into a questionnaireadministered to all technicians in the electrical maintenance department.The questionnaire included 550 tasks. Figure 3 shows sample itemsfrom the questionnaire for the electrical maintenance job. Technicianswere asked to rate each task on importance, difficulty, and frequency ofperformance. The rating scale for frequency included zero. A zero ratingindicated that the technician rating the task had never performed the task.Technicians who rated a task zero were asked not to evaluate the task’s difficulty.Customized software may be used to analyze the ratings collected via thequestionnaire. The primary requirement used to determine whether a task Required training was its importance rating.

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Example of a Task Analysis:Figure 7.3 Sample Items from Task Analysis Questionnaires for the Electrical Maintenance Job

Job: Electrical Maintenance Worker

Task Performance Ratings

Task #s

Task

Description

Frequency of

PerformanceImportance Difficulty

199-264

199-265

199-266

199-267

199-268

Replace a light bulb

Replace an electrical outlet

Install a light fixture

Replace a light switch

Install a new circuit breaker

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

Frequency of performance0=never

5= often

importance 1=negligible

5=extremely high

Difficulty1=easiest

5=most

difficult

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Example of a Task Analysis:A task rated “very important” was identified as one requiring training regardless of its frequency or difficulty. If a task was ratedmoderately important but difficult, it also was designated fortraining. Tasks rated unimportant, not difficult, and doneinfrequently were not designated for training.The list of tasks designated for training were reviewed by the SMEsto determine if they accurately described job tasks. The result wasa list of 487 tasks. For each of the 487 tasks, two SMEs identifiedthe necessary knowledge, skills abilities, and other factors requiredfor performance. This included information on working conditions,cues that initiate the task’s start and end, performance standards,safety considerations, and necessary tools and equipment.

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Example of a Task Analysis:All data were reviewed by plant technicians and members of thetraining department. More than 14,000 knowledge, skill, ability,

andother considerations were clustered into common areas. Anidentification code was assigned to each group that linked groupsto task and knowledge, skill, ability, and other factors. Thesegroups were then combined into clusters. The clusters

representedqualification areas. That is, the task clusters related to linked tasksthat the employees must be certified in to perform the job. Theclusters were used to identify training lesson plans and courseobjectives. Trainers also reviewed the clusters to identifyprerequisite skills for each cluster.