Employee Training and Development

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Employee Training and Development

Seventh Edition

Raymond A. Noe The Ohio State University

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EMPLOYEE TRAINING AND DEVELOPMENT, SEVENTH EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2017 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2013, 2010, and 2008. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

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ISBN 978-0-07-811285-0 MHID 0-07-811285-0

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Library of Congress Cataloging-in-Publication Data

Noe, Raymond A., author. Employee training and development / Raymond A. Noe, The Ohio State University. — Seventh edition. pages cm ISBN 978-0-07-811285-0 (acid-free paper) 1. Employees–Training of. I. Title. HF5549.5.T7N59 2016 658.3’124–dc23 2015027006

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This book is dedicated to family, friends, colleagues, and all of the current and past hard-working people at McGraw-Hill who have supported and contributed to making seven editions of this book possible.

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vivi

Traditionally, training and development were not viewed as activities that could help com- panies create “value” and successfully deal with competitive challenges. Today, that view has changed. Companies that use innovative training and development practices are likely to report better financial performance than their competitors that do not. Training and development also help a company develop the human capital needed to meet competitive challenges. Many companies now recognize that learning through training, development, and knowledge management helps employees strengthen or increase their skills in order to improve or make new products, generate new and innovative ideas, and provide high- quality customer service. Also, development activities and career management are needed to prepare employees for managerial and leadership positions and to attract, motivate, and retain talented employees at all levels and in all jobs. An emphasis on learning through training, development, and knowledge management is no longer in the category of “nice to do”—they are a “must do” if companies want to gain a competitive advantage and meet employees’ expectations.

Businesses today must compete in the global marketplace, and the diversity of the workforce continues to increase. As a result, companies need to train employees to work with persons from different cultures, both within the United States and abroad. Tech- nologies, such as social media, and tablet computers, such as the iPad, reduce the costs associated with bringing employees to a central location for training. At the same time, the challenge is ensuring that these training methods include the necessary conditions (practice, feedback, self-pacing, etc.) for learning to occur. Through the blended learning approach, companies are seeking the best balance between private, self-paced, technology- based training (such as online learning), and methods that allow interpersonal interac- tion among trainees (such as classroom instruction or active learning). Employees from the millennial generation are well versed in informal learning, especially through col- laboration facilitated by social media such as Facebook and Twitter. Also, their gaming experiences lead them to expect that learning experiences will be fun, multidimensional, challenging, and provide immediate feedback and rewards.

The role of training has broadened beyond training program design. Effective instruc- tional design remains important, but training managers, human resource experts, and trainers are increasingly being asked to create systems to motivate employees to learn, not only in programs but informally on the job; create knowledge; and share that knowledge with other employees in the company. Training has moved from an emphasis on a one- time event to the creation of conditions for learning that can occur through collaboration, online learning, traditional classroom training, or a combination of these methods. There is increased recognition that learning occurs informally, outside the boundaries of a for- mal training course.

Also, the employee-employer relationship has changed. Due to rapidly changing busi- ness environments and competition that can quickly cause profits to shrink and skill needs to change, companies are reluctant to provide job security to employees. At the same time, many employees are job hopping to find more challenging and interesting work or to maximize the value that they can get for their skills in the job market, and not making

Preface

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Preface vii

a long-term commitment to any company. As a result, both employees and companies are concerned with developing future skills and managing careers. Companies want a work- force that is motivated and productive, has up-to-date skills, and can quickly learn new skills to meet changing customer and marketplace needs. Despite the prevalence of job hopping, companies want to provide a work environment and training and development opportunities that will them the employer of choice for talented employees. Employees want to develop skills that not only are useful for their current jobs, but also are congruent with their personal interests and values. Given the increasing time demands of work, employees are also interested in maintaining balance between work and non work interests.

The chapter coverage of Employee Training and Development reflects the traditional as well as the broadening role of training and development in organizations. Chapter One, “Introduction to Employee Training and Development,” covers the role of training and development in companies. Chapter Two, “Strategic Training,” discusses how training practices and the organization of the training function can support business goals. Because companies are interested in reducing costs, the amount of resources allocated to training is likely to be determined by the extent that training and development activities help the company reach business goals. Topics related to designing training programs are covered in Chapters Three through Six. Chapter Three, “Needs Assessment,” discusses how to identify when training is appropriate. Chapter Four, “Learning and Transfer of Training,” addresses the learning process and characteristics of a learning environment. The chapter also empha- sizes what should be done in the design of training and the work environment to ensure that training is used on the job. Chapter Five, “Program Design,” provides practical suggestions regarding what can be done to facilitate learning and transfer of training before, during, and after a course or program. The role of knowledge management in facilitating learning and transfer of training is also discussed. Chapter Six, “Training Evaluation,” discusses how to evaluate training programs. Here, the student is introduced to the concepts of identifying cost-effective training, evaluating the return on investment of training and learning, and determining if training outcomes related to learning, behavior, or performance have been reached. Chapters Seven and Eight cover training methods. Chapter Seven, “Traditional Training Methods,” discusses presentational methods (e.g., lecture), hands-on methods (e.g., on-the-job training and behavior modeling), and group methods (e.g., adventure learn- ing). Chapter Eight, “Technology-Based Training Methods,” introduces new technologies that are being used in training. These technology-based training methods include e-learning, mobile learning, social media, simulations, serious games, massive open online courses (MOOCs), virtual worlds, and blended learning. Chapters Seven and Eight both conclude by comparing training methods on the basis of costs, benefits, and learning characteristics.

Chapter Nine, “Employee Development and Career Management,” introduces devel- opmental methods (assessment, relationships, job experiences, and formal courses). In addition, the use of development plans to help employees succeed in their self-directed or protean careers is highlighted. Topics such as succession planning and on boarding are discussed. Chapter Ten, “Social Responsibility: Legal Issues, Managing Diversity, and Career Challenges,” emphasizes the role that training plays in helping companies improve the communities where they are located by increasing the skill level of the work- force, helping provide jobs, and taking actions to help all employees grow and develop, regardless of their personal characteristics or career challenges. The chapter also dis- cusses compliance with laws that affect training and development, training partnerships,

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viii Preface

managing diversity, cross-cultural preparation, and how companies can help employees deal with career challenges such as balancing work and life, coping with career breaks such as taking time off for family or required military service, job loss, and retirement. Finally, Chapter Eleven, “The Future of Training and Development,” looks at how train- ing and development might be different ten or twenty years from now.

Employee Training and Development is based on my more than twenty-five years of teaching training and development courses to both graduate and undergraduate students. From this experience, I have realized that managers, consultants, trainers, and faculty working in a variety of disciplines (including education, psychology, business, and indus- trial relations) have contributed to the research and practice of training and development. As a result, the book is based on research conducted in several disciplines, while offering a practical perspective. The book is appropriate for students in a number of programs. It suits both undergraduate and master’s-level training courses in a variety of disciplines.

DISTINCTIVE FEATURES This book has several distinctive features. First, my teaching experience has taught me that students become frustrated if they do not see research and theory in practice. As a result, one distinctive feature of the book is that each chapter begins with a real-life vignette of a company practice that relates to the material covered in the chapter. Many examples of company practices are provided throughout the chapters. Each chapter ends with a real- life case and related questions that give students the opportunity to apply the chapter’s content to an actual training or development issue.

A second distinctive feature of the book is its topical coverage. The chapters included in Part Two, “Designing Training,” relate to training design (needs assessment, train- ing methods, learning and transfer of training, and program design and evaluation). Instructional design is still the “meat and potatoes” of training. Part Three, “Training and Development Methods,” covers the more exciting part of training and development—that is, training and development methods. But as the role of managers and trainers broadens, they are increasingly involved in helping all employees grow, develop, and cope with career challenges, as well as preparing high-potential employees for leadership positions. For example, managers and trainers need to understand generational differences in em- ployees’ career needs, career paths, cross-cultural training, diversity, outplacement, and succession planning—topics that fall outside the realm of instructional design. These top- ics are covered in Part Four, “Social Responsibility and the Future.”

The book begins with a discussion of the context for training and development. Part One includes chapters that cover the economic and workplace factors that are influencing trends in the training profession. One of these trends is that companies are emphasizing learning through formal training and development, knowledge management, and informal learn- ing. In addition, these chapters discuss the need for training, development, and learning to become strategic (i.e., to contribute to business strategy and organizational goals). Why? In successful, effective training, all aspects of training—including training objectives, meth- ods, evaluation, and even who conducts the training—relate to the business strategy. More and more companies are demanding that the training function and training practices sup- port business goals; otherwise, training may be outsourced or face funding cuts. Although students in business schools are exposed to strategic thinking, students in psychology and

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Preface ix