Management and Organizational Studies 3343A/B Chapter 1: chapter1
38 views10 pages
Chapter 1: The Training and Development Process
The TD Bank’s Robbery case:
- It is not hard to understand how investments in the training and development
of employees can improve an organization’s success and competitiveness
- Training and development is all about managing performance
-Performance Management: is the process of establishing performance
goals and designing interventions and programs to develop employees and
improve their performance.
-Performance management signals to employees what is really
important in the organization, ensures accountability for behaviour
and results, and helps to improve performance
- Performance management isn’t a single event
- Performance management is a comprehensive ongoing and continuous
process which involves various activities and programs designed to develop
employees and improve performance
Performance management process involves many components that are
closely related to each other:
oThe starting point of the performance management process is setting
Managers meet with employees and discuss performance
expectations and agree on performance goals.
These goals usually stem from organizational or departmental level
goals and objective and ensures that employee’s goals are aligned
with department and organizational goals.
oOnce the manager and employee have agreed on goals, it’s important for
employees to receive ongoing feedback so that they know whether or not
they are accomplishing their goals.
oA key part of the performance management process is a formal
This usually involved the use of standard rating form on which the
manager and employee (self-appraisal) evaluate the employee’s
performance on a number of behavioural/performance dimensions
and review the extent to which the employee had accomplished
The process then repeats itself with the setting of new or revised goals.
Critical component of performance management process is the employee
development and the creation of a development plan for employees
(this involves programs and activities that ae designed to help
employees achieve their goals and improve their performance).
Employee development can include:
Formal training and development programs in the classroom
On the job training programs such as coaching and mentoring.
- Each components of the performance management process provides
information on the developmental needs of employees.
o (Eg: when setting goals it might be determined that attending a
training program will help an employee achieve his or her goals).
- Part of goal setting process might include a development plan which will allow
employees to achieve their goals.
Performance evaluation identi#es employee’s strengths and
weakness as well as areas that need improvement.
Each component of performance management process can identify
an employee`s training needs and lead to action plans for
- Although the evaluation of performance (eg: performance appraisal) is a
fundamental part of performance management, a critical component of the
process is employee development and this requires e0ective training and
Training and development:
- Training and development is one of the most important ways that
performance can be improved in the organizations.
-Training: refers to formal and planned e0orts to help employees acquire
knowledge, skills, and abilities to improve performance in their current job.
-Training consists of a short term focus on acquiring skills to perform
Goal of training: is to help you learn to do your current job better
-Development: refers to formal and planned e0orts to help employees
acquire the KSA`s required to perform future job responsibilities and for the
long term achievement of individual career goals and organizational
- The goal is to prepare individuals for promotions and future job as well as
additional job responsibilities.
-Development: this process might consist of extensive programs such as
leadership development, and might include seminars and workshops, job
rotation, coaching, and other assignment.
- The goal is to prepare employees for future responsibilities and often for
- Training and development is part of a larger system and 4eld that is known as
human resource development. (HRD).
-Human resource development: involves systematic and planned activities
that are designed by an organization to provide employees with opportunities
to learn necessary skills to meet current and future job demands.
Main functions of human resource development: are training and
development, organization development, and career development
o The core of all three human resource development function is
Summary: the creation of an organizational environment conducive to
learning and optimum performance is fundamental 4rst step in the process of
performance management system.
oAll systems are concerned with the goal of improving organizational
e0ectiveness through the improvement of human resource.
Bene#ts of training and development:
- Organizations that invest in the training and development of their employees
reap many bene4ts, but so do the employees and the society in which they
- Training and development play a critical role in the success of organizations,
individuals, and society.
Bene#ts to organizations:
- Organizations that invest in training and development bene4t in many ways
that ultimately help them obtain a sustained competitive advantage
- Training and development can facilitate an organization’s strategy, increase
e0ectiveness, and improve employee recruitment and retention.
- The goal of all organizations is to survive and prosper (Training and
development can help organizations achieve these goals).
- Organizations can be successful by training employees so they have the
knowledge and skills necessary to help organizations achieve their goals and
-By linking training to an organization’s strategy, training becomes a
strategic activity which operates in concert with other programs and
activities an organization’s strategic business objectives.
Training is an important component of organization’s people strategy to
ensure that the right people, with the right skills, are in the right roles.
- There is a calculable bene4t to training employees
- Trained employees can do more and better work, make fewer errors, require
less supervision, have more positive attitudes, and have lower rates of
- Trained employees also produce higher quality products and services (these
bene4ts have a positive e0ect on an organization’s competitiveness and
The link between training and organization’s performance is
strongly supported by research
- Training is positively related to human resource outcomes (eg: employee
attitudes, motivation, behaviours), organizational performance outcomes (eg:
performance and productivity), and to a lesser extent 4nancial outcomes (eg:
pro4t, 4nancial indicators).
Companies that invest more in training have higher revenues,
pro#ts, and productivity growth than #rms that invest less in
Training is so important for organizations that it can even make the
di*erence between business success and failure.