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Learning Objectives After studying this chapter, you will be able to:

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2 Learning 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.

3 Learning 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.

4 Human 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.

5 Human Resource Wheel Does anyone want to explain the HR wheel?
What it does is describe all the aspects of the HR department. Training and development Career development Selection and staffing Compensation and Benefits Labor relations Etc.

6 Orientation 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 stress Lower turnover Reduce integration time

7 Types of Orientation Orientation usually should be conducted at two distinct levels: General organizational orientation Presents topics of relevance and interest to all employees. Normally given by the human resource department. Departmental and job orientation Covers 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) orientation Job talks about things specific to your work… normally handled by a manager or senior peer.

8 Orientation 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 procedures Holidays Telephone numbers Performance appraisal forms

9 Orientation 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 paperwork Stuff you don’t care about Orientations do not have a support link to current employees

10 Training and Needs Assessment
Acquiring skills or learning concepts to increase the performance of employees. Needs assessment Systematic 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.

11 CPOACAD Study The 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.

12 Establishing Training Objectives
Training objectives can be categorized as follows: Instructional objectives What 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 objectives What 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 on instruction (teaching new skills or information) Organizational (reducing cost, increasing productivity) Or (next slide)

13 Establishing Training Objectives (cont’d)
Individual performance and growth objectives What 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.

14 Methods of Training On-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. Advantage Allows flexibility. No special facilities. Disadvantage Haphazard 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)

15 Methods of Training (cont’d)
Vestibule training System in which procedures and equipment similar to those used in the actual job are set up in a special working area called a vestibule. Advantage Trainer can stress on theory and use of proper techniques. Student can learn by doing the job. Disadvantage The 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 pressure Cons: Expensive Simulated situation may not be ac similar to the work environment as the training implies (they give you time… real work environment more time constricted)

16 Methods of Training (cont’d)
Apprenticeship training System 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 training Most common methods are lecture, discussion, audiovisual methods, experiential methods, and computer-based training. Commonly used classroom training methods Lecture Discussion Audiovisual method Experiential method Computer-based training Apprenticeship; 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 process Classroom training: Sit in a room and talk about what you are going to do. Can use all kinds of methods. (see list on slide)

17 Making Training Meaningful
In order to make training more meaningful, managers must avoid some pitfalls. Lack of reinforcement. Methods to effective learning Praise 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 levels Pace should be based on the trainee

18 Management Development
Process of developing the attitudes and skills necessary to become or remain an effective manager. Management development needs Overall (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)

19 Management Development (cont’d)
You do a needs assessment… what does the organization need Individual management needs (both looking at current and future jobs) Develop management objectives… and individual program objectives

20 Management Development Methods
Figure 13.3 The 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 playing We will look at these in a little more detail.

21 Management Development Methods (cont’d)
Understudy assignments Advantage Heir to the job realizes the purpose of training. Can learn in practical and realistic situations. Is not directly responsible for operating results. Disadvantage Learns 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 job Pros Heir realizes the importance of the training. Learning in practical environment Not yet directly responsible for operating results. Cons Learn good and BAD practices from incumbent Expensive… in the business world you have someone in a non productive status.

22 Management Development Methods (cont’d)
Coaching Advantage Trainees gain practical experience. Trainees see results of their decisions. Disadvantage Coach 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. Pros Trainee gains practical experience See the results of their decisions Cons: Some coaches do not care about the trainee and neglect this responsibility Passing of improper techniques by coach

23 Job Rotation Process in which the trainee goes from one job to another within the organization, generally remaining in each job from six months to a year. Advantage Trainees can observe the way management principles can be applied in various environments. Practical training allowing trainee to get familiar with the entire organizational operations. Disadvantage Delegated 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 environments See entire organization (or least a larger portion) Cons: Doing menial assignments in each area. Can’t give you large responsibility Normally they leave you longer than you need to be there.

24 Other Methods of Management Development
Special Projects Special 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 Assignments Committee 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.

25 Classroom Training Lectures
Although the lecture is useful for presenting facts, its value in changing attitudes and teaching skills is somewhat limited. Case studies Training technique that presents real and hypothetical situations for the trainee to analyze. Advantage Brings a note of realism to the instruction. Disadvantage Techniques 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 classroom Cons: Very simile… not realistic Lack involvement emotionally to the case

26 Classroom 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 playing Trainees 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 technique Simulates 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.

27 Classroom Training (cont’d)
Business games Generally provides a setting of a company and its environment and requires a team of players to make decisions involving company operations. Advantages Simulate reality. Decisions are made in a competitive environment. Feedback is provided concerning decisions. Decisions are made using less than complete data. Disadvantage Many participants simply attempt to determine the key to winning. Games- Create environment that simulates company decisions about operations Pros Simulates reality Competitive environment Immediate feedback concerning decisions Cons- People look as just a game to win and not learning process.

28 Lemonade Stand Team A vs Team B
Most money after 10 days of sales wins. Start with $3.00 Number of signs to purchase ($0.25 each) Number of cups to make Cost of each cup.

29 Lemonade Stand

30 Management Education Can 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

31 Assessment Centers Utilizes 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. Difficulties More 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: Expensive Employees 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

32 Evaluation of Training
Reaction How well did the trainees like the program? Learning What principles, facts, and concepts were learned in the program? Behavior Did the job behavior of the trainees change because of the program? Results What 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 .

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