2Learning Objectives After studying this chapter, you will be able to: Define human asset accounting.Describe the orientation process.Define training.Define needs assessment.Discuss vestibule training, apprenticeship training, and computer-based instruction.
3Learning Objectives (cont’d) After studying this chapter, you will be able to:List and define the most popular methods of management development.Describe an assessment center.List the steps involved in the evaluation of training and management development.
4Human Asset Accounting Involves determining and recording the value of an organization’s human resources in its statement of financial condition.Though not an acceptable accounting practice for tax or financial reporting purposes, it recognizes that the quality of an organization’s human resources is an important asset.Organizations have asset sheets for the cash they have… but a large about of their assets are in their employees.One way to record this information is through human asset accounting.
5Human Resource Wheel Does anyone want to explain the HR wheel? What it does is describe all the aspects of the HR department.Training and developmentCareer developmentSelection and staffingCompensation and BenefitsLabor relationsEtc.
6Orientation and Orientation Programs Introduction of new employees to the organization, their work units, and their jobs.Objectives:Reduction of new employee stress.Lower start-up costs of integrating the new employee into the organization.Eventual reduction of turnover due to failure to understand the rules and culture of the organization.Reduced time required to integrate the employee into the job.Helping the employee adjust to his or her work team or work environment more quickly.Has anyone had an orientation with their job?Orientation could be a week long discussion about your job to an unplanned, unofficial walk around the facility.The unplanned one can set the employee on the wrong foot… so it is suggested that companies do it officially.Reasons:Reduce stressLower turnoverReduce integration time
7Types of OrientationOrientation usually should be conducted at two distinct levels:General organizational orientationPresents topics of relevance and interest to all employees.Normally given by the human resource department.Departmental and job orientationCovers topics unique to the new employee’s specific department and job.Usually handled by the new employee’s manager.When you conduct orientation you should focus on two distinct levels:The general organization & departmental (job) orientationJob talks about things specific to your work… normally handled by a manager or senior peer.
8Orientation Kit Essentials Organizational chart.Map of the organization’s facilities.Copy of policy and procedures manual.List of holidays and fringe benefits.Copies of performance appraisal forms and procedures.Copies of other required forms (e.g., expense reimbursement form).Emergency and accident prevention procedures.Sample copy of company newsletter or magazine.Telephone numbers and locations of key company personnel.Copies of insurance plans.These are some great things for an orientation kit.Policy and proceduresHolidaysTelephone numbersPerformance appraisal forms
9Orientation Problems Information overload for the new employee. Too much paperwork.Unnecessary information.Too much “selling” of the organization.Lack of support of existing employees.Lack of a long-term orientation.Lack of accurate follow-up.Failure to correct weaknesses in the orientation program.Why do people hate orientations?Too much paperworkStuff you don’t care aboutOrientations do not have a support link to current employees
10Training and Needs Assessment Acquiring skills or learning concepts to increase the performance of employees.Needs assessmentSystematic analysis of the specific training activities a business requires to achieve its objectives.Involves the following steps:Define assessment objectives.Identify necessary data.Select data collection method.Gather data.Analyze and verify data.Prepare final report.Why do we train… To give the trainee new skills.Training differs from education. Education is training to make someone a more knowledgeable and well rounded person. Training purpose to is to increase skills and ultimately increase performance.Needs assessment.What does the business require to be successful in the future?Coast Guard did a senior enlisted needs assessment and decided that they needed to change the focus of the Chief Petty Officer School. Originally it was developed to help E-8/ E-9 in more of a command staff role. Now it is directed at giving new E-7s basic leadership training.
11CPOACAD StudyThe graph you are looking at is part of my dissertation. It shows the change in performance, as measured through enlisted evaluations, pre and post CPOACAD.
12Establishing Training Objectives Training objectives can be categorized as follows:Instructional objectivesWhat principles, facts, and concepts are to be learned in the training programs?Who is to be taught?When are they to be taught?Organizational and departmental objectivesWhat impact will the training have on outcomes such as absenteeism, turnover, reduced costs, and improved productivity?Most people feel that organizations just train for trainings sake.In reality you can look at 3 major categories of training obectives.Are you focused oninstruction (teaching new skills or information)Organizational (reducing cost, increasing productivity)Or (next slide)
13Establishing Training Objectives (cont’d) Individual performance and growth objectivesWhat impact will the training have on the behavioral and attitudinal outcomes of the individual trainee?What impact will the training have on the personal growth of the individual trainee?Individual performance and growth.(cross training in another department, health and wellness training)The organization must also determine how often the training need to occur and who needs to be trained.
14Methods of TrainingOn-the-job-training (Job rotation or cross-training)Training in which the trainee is shown how to perform the job and allowed to do it under the trainer’s supervision.AdvantageAllows flexibility.No special facilities.DisadvantageHaphazard or negligent training due to work pressures.There are a number of ways to conduct training.On the job training is a concept that everyone is probably familiar with.You watch trainer’s perform the work and then eventually start doing it your self (under the trainers supervision).What are the pros and cons.Pro: Very flexible… some days you are working others you are being trained.no special facilities are instructors necessary.Cons: The level of training is not consistent within the organization.Work can put training on a back burner.(give example on getting aircraft back to Bravo Status)
15Methods of Training (cont’d) Vestibule trainingSystem in which procedures and equipment similar to those used in the actual job are set up in a special working area called a vestibule.AdvantageTrainer can stress on theory and use of proper techniques.Student can learn by doing the job.DisadvantageThe method is expensive.Employee must adjust to the actual production environment.Does anyone know what Vestibule training is?If you designed a fake McDonalds and had training in it. All the equipment is the same as the work place. A simulator (aircraft) would be this type of training.Pros:Can teach the students while they are practicing.Can stress theory … with no actual job pressureCons:ExpensiveSimulated situation may not be ac similar to the work environment as the training implies (they give you time… real work environment more time constricted)
16Methods of Training (cont’d) Apprenticeship trainingSystem in which an employee is given instruction and experience, both on and off the job in all aspects of a skilled occupation, craft, or trade.Classroom trainingMost common methods are lecture, discussion, audiovisual methods, experiential methods, and computer-based training.Commonly used classroom training methodsLectureDiscussionAudiovisual methodExperiential methodComputer-based trainingApprenticeship;Normally used with a trade or craft. You follow around the master and learn on the job by following his lead and practicing when able. Aircraft pilot upgrade is similar to this processClassroom training:Sit in a room and talk about what you are going to do. Can use all kinds of methods. (see list on slide)
17Making Training Meaningful In order to make training more meaningful, managers must avoid some pitfalls.Lack of reinforcement.Methods to effective learningPraise and recognition.Feedback.Setting standards for trainees and measuring performance against the standards.Repeating a job or task several times.Pace of the training should be adjusted to the trainee.One of the problems with training is that there is little reinforcement after the trianing ends. Most people forget and go to the way they were doing things.Example (nutrient/ training… after the training people think about changing their diet, maybe making a few adjustments for a week or two. A month later they are back to eating the same food.)Methods that help:Setting standards and repeating the job or task until they meet performance levelsPace should be based on the trainee
18Management Development Process of developing the attitudes and skills necessary to become or remain an effective manager.Management development needsOverall (aggregate) organizational needs.Analysis of problem areas within the organization.Undertaking new business ventures, increased competitive threat, and a revised corporate vision or mission are all usually reasons for such a reevaluation.Development needs of individual managers.Planned promotions or reassignments also often indicate the need for development.As we are in a management class… lets look at establishing a management development program.What is it? A program that develops the skills necessary to be an effective manager.First you do a needs assessment.What are the organizations needs (what ar the problem area in the organization… how can we train to fix them. If we are poor in our analytical/ statistical knowledge base… train in that area.Individual manager needs. (planned promotions or reassignments… for job growth)
19Management Development (cont’d) You do a needs assessment… what does the organization needIndividual management needs (both looking at current and future jobs)Develop management objectives… and individual program objectives
20Management Development Methods Figure 13.3The list on the screen is the most common methods of management development.I’ve talked about job rotation a few times.You can also give them special projects or put them on committees.Off the job:Classroom training (what you are doing now)Case studies and role playingWe will look at these in a little more detail.
21Management Development Methods (cont’d) Understudy assignmentsAdvantageHeir to the job realizes the purpose of training.Can learn in practical and realistic situations.Is not directly responsible for operating results.DisadvantageLearns the bad as well as good practices of the incumbent.Expensive when maintained over long periods.Understudy assignment… In the Navy ( in O5 commands… the XO becomes the CO) this is an example. Also an overlap in job responsibility… the understudy comes in a few months early to learn the jobProsHeir realizes the importance of the training.Learning in practical environmentNot yet directly responsible for operating results.ConsLearn good and BAD practices from incumbentExpensive… in the business world you have someone in a non productive status.
22Management Development Methods (cont’d) CoachingAdvantageTrainees gain practical experience.Trainees see results of their decisions.DisadvantageCoach could neglect training responsibilities.Coach could pass on inappropriate management practices.Coaching:Experience managers help guide you through solving managerial problems (Coaching is similar to mentoring… yet different) The mentoring relationship is a closer one-on-one situation, where coaching is directed towards a larger group.ProsTrainee gains practical experienceSee the results of their decisionsCons:Some coaches do not care about the trainee and neglect this responsibilityPassing of improper techniques by coach
23Job RotationProcess in which the trainee goes from one job to another within the organization, generally remaining in each job from six months to a year.AdvantageTrainees can observe the way management principles can be applied in various environments.Practical training allowing trainee to get familiar with the entire organizational operations.DisadvantageDelegated menial assignments in each job.Tendency to leave the trainee in each job longer than necessary.A friend of my wife went through a managerial training program with Motorola. She spent 6 months in supply… six in manufacturing and 6 in an international organization. She did special projects for each of the areas she worked for.At the end she was offered a job from one of the departments.Pros:See management in various environmentsSee entire organization (or least a larger portion)Cons:Doing menial assignments in each area. Can’t give you large responsibilityNormally they leave you longer than you need to be there.
24Other Methods of Management Development Special ProjectsSpecial projects require the trainee to learn about a particular subject.It is critical that the special assignments provide a developmental and learning experience for the trainee and not just busywork.Committee AssignmentsCommittee assignments, can be used if the organization has regularly constituted or ad hoc committees.An individual works with the committee on its regularly assigned duties and responsibilities.Special projects can give you the opportunity to learn a component (like you would with a job rotation) without moving you.Committee… same thing as a special project… gives you the opportunity to see more of the company. Also you get to build contacts throughout the organization.
25Classroom Training Lectures Although the lecture is useful for presenting facts, its value in changing attitudes and teaching skills is somewhat limited.Case studiesTraining technique that presents real and hypothetical situations for the trainee to analyze.AdvantageBrings a note of realism to the instruction.DisadvantageTechniques are often simpler than the real situations managers face.Participants often lack emotional involvement.Success depends heavily on the skills of the instructor.Lecture… you all understand that/ Good at presenting information… not good for teaching skills.Case Studies. This was started by Harvard Business School. You look at a situation and answer questions on it. Similar to our homework. You learn some theories in class and then try to apply them to the case study.Pro.Makes you think about the situation outside of the classroomCons:Very simile… not realisticLack involvement emotionally to the case
26Classroom Training (cont’d) Incident method (variation of case study)Trainee is initially given the general outline of a situation. The instructor then provides additional information on request.Role playingTrainees are assigned different roles and required to act out these roles in a realistic situation.Videotaping allows for review and evaluation of the exercise for improved effectiveness.In-basket techniqueSimulates a realistic situation by requiring each trainee to answer one manager’s mail and telephone calls.Incident… it is like the case study. The difference is that you provide additional information at the students request. It is teaching the student to find information whole and look for answers to fill them,Role playing.You put the trainee in a simulated training environemnet where they play a manager.You play the sales manager … I play the new client with a problem with the sales rep.Inbasket:Simulation that has the trainee answers a manger’s mail or phone call. Gives real world experience to the traionee.
27Classroom Training (cont’d) Business gamesGenerally provides a setting of a company and its environment and requires a team of players to make decisions involving company operations.AdvantagesSimulate reality.Decisions are made in a competitive environment.Feedback is provided concerning decisions.Decisions are made using less than complete data.DisadvantageMany participants simply attempt to determine the key to winning.Games-Create environment that simulates company decisions about operationsProsSimulates realityCompetitive environmentImmediate feedback concerning decisionsCons-People look as just a game to win and not learning process.
28Lemonade Stand Team A vs Team B Most money after 10 days of sales wins.Start with $3.00Number of signs to purchase ($0.25 each)Number of cups to makeCost of each cup.
30Management EducationCan occur within the confines of the academic or special (seminar) education environment.At their best, these programs can provide fresh ideas, strategies, and perspectives for the manager-student.At their worst, they may lack real-world application and be a waste of time.Complaints range from the courses being too lengthy, drain the energy of employees, and may encourage career moves and employment changes.You are involved with management education.The concept is that you will get fresh ideas or perspective that can be used in your workplace.At the worst… you are wasting your time, because there is little to no real world application
31Assessment CentersUtilizes a formal procedure to simulate the problems a person might face in a real managerial situation to evaluate the person’s potential as a manager and determine the person’s development needs.Exercises involve the participants in decision making, leadership, written and oral communication, planning, organizing, and motivating.DifficultiesMore expensive than other methods.Employees come from different levels in the organization.Certain exercises may be only remotely related to the on-the-job activity at the organization in question.A formal procedure that simulates problems a manager might face in tier work environement. Trainees work through the problems and are evaluated on their performance.The assessors are normally a couple levels of management over the trainees.The only training is feedback to the employee.Cons:ExpensiveEmployees come from different areas of the organization and have difference experience levels. Difficult to assess on the same level.In group environment high performers may not perform well in group enviornemnt
32Evaluation of Training ReactionHow well did the trainees like the program?LearningWhat principles, facts, and concepts were learned in the program?BehaviorDid the job behavior of the trainees change because of the program?ResultsWhat were the results of the program in terms of factors such as reduced costs or reduction in turnover?Kirkpatrick developed the four levels of training assessment.Reaction: did the employees like the training (eval at the end)Learning: did the employees learn anything (test at the end)Behavior Change: did the employee change behavior (questionnaire asked 6 months, or so, after training to the employee and supervisor)Result: What organizational changes are affected by the change. In the Coast Guard… you could see a rise in the performance level for the participants.The is a level 5 not talked about in the book (Phillips). It is the return on investment. How much did we spend… how much did we make .