Session 6
Training and Development
1The learning process
1.1Introduction
Learning is the process of acquiring knowledge through experience that leads to a change in behaviour.
Learning occurs in new situations and may be triggered by questions – these may be about facts, processes or purposes.
The pace of learning or progress changes with familiarity – this is known as the learning curve. The shape of the learning curve depends on the type of work or task and the individual.
There are four theories of learning. The first two are behavioural theories and the, latter two are cognitive theories.
Reinforcement theory
Information theory
Cognitive and problem solving approaches
Experiential learning theory (Kolb)
Individuals and learning
Honey and Mumford propose four learning styles:
Theorist
Activist
Reflector
Pragmatist
For effective learning there must be harmonization between learning methods and styles.
Learning organizations
Learning organizations are those that encourage questions and explicitly recognize mistakes as part of the learning process.
The design of a learning company adapts itself in response to changing aspirations of people inside and outside the organization. An organization in a development phase, integrating employees, ideas and activities, can adopt a learning approach to change.
Management’s role in a learning organization is to encourage:
Continuous learning
Acquisition of new knowledge and skills
These need to be transformed into:
Behaviour
Products
Processes
Question 1
In a business and accounting environment that is constantly changing, it is vital that you adopt a learning style to ensure individual and organizational success. There are different learning styles and approaches which suit different individuals.
Required
a)Identify and describe two different schools of thought on approaches to learning (4 marks)
b)Identify and describe Honey and Mumford’s theory on learning styles. (6 marks)
c)Describe the experiential learning cycle. (5 marks)
(15 marks)
Answer Plan
Training and development
The importance of training and development
Training and development is a planned process to modify attitudes, knowledge or skill behaviour through learning experiences to achieve effective performance in an activity or range of activities.
The purpose of training is to develop the abilities of the individual and to satisfy the current and future manpower needs of the organization. Training and development policies define the relationship between objectives and human resource needs, provide a training framework and information and enhance public relations.
The benefits to the organization of effective training and development are higher quality staff, with greater commitment to the organization and improved customer service.
The benefits to the individual of effective training and development are increased motivation, developed abilities, talents and skills.
Methods of training and development
The training manager is responsible for determining, organizing, managing and directing training activities as well as acting in an advisory capacity. Responsibility for training is usually shred between personnel training specialists and departmental supervisors.
Training and development methods for individuals include:
Training courses, both external and in-house;
On the job training;
Mentoring
Coaching;
Computerized interactive learning;
Planned experience;
Self managed learning.
Training and development methods for groups include:
Lectures;
Discussions;
Case studies and role playing;
Business games
T-group exercises.
Outdoor training equates the skills of out door pursuits – planning, organizing, team building and dealing with uncertainty – with management qualities of leadership, communication, co-ordination, motivation and creativity.
Implementation of training can be either in-house or external. External sources of training include: colleges, universities, training organizations and consultants. For in-house provision, infrastructure and staffing must be carefully considered.
Question 2
Sarah is a training manager with W plc. Which has a number of manufacturing subsidiaries. She has been asked to audit the training procedures at one of these subsidiaries, about which complaints regarding delivery delays and quality have been received. In addition the labour productivity is relatively low at this subsidiary, although the quality of staff varies favourably with others.
She has found that the new employees are trained in the normal work of the plant by experienced workers ‘on the job’. When new tasks are required the supervisors provide coaching.
In the management accounting section, only qualified staff are employed. Their managers are available for counseling if problems arise.
Required
a)Explain the disadvantages of the above methods of training (5 marks)
b)Describe possible alternatives outlining their potential disadvantages (10 marks)
(15 marks)
Answer Plan
Effective Training and Development
3.1Benefits of training
A systematic approach to training will involve:
Defining training needs
Deciding what training is required to satisfy these needs
Using experienced trainers to plan and implement the training
Following up and evaluating the training to ensure that it is effective.
Organisation: Higher quality staff with greater commitment and improved customer service.
Individual: increased motivation, developed abilities, talents and skills.
3.2Training analysis
Job training analysis: The process of identifying the purpose of the job and its component parts, and specifying what must be learnt to achieve effective perfomance.
Training needs will be assessed by :
Organisational analysis: An analysis of the features of an organization and a diagnosis of its problems may well indicate that training is necessary. It involves: overall performance, policies, indicators like labour turnover, absenteeism or the level of grievances.
Performance appraisal: through the feedback on individual assessments.
Job analysis: covers job requirements, skills needed, duties and tasks, knowledge and skills required and the training specification.
3.3Ways
5 stages to consider:
Determination of the development and training objective
Determination of the appropriate strategy
Planning and implementation
Evaluation of the programme
Reviewing the system
Training solutions include ‘in-house’ and externally.
3.4Evaluation
Hamblin’s 5 levels of evaluation:
Reactions of the trainees
New skills and knowledge aquired as a result of the training
Job behaviour measures the extent to which trainees have applied their training on the job
Organisation-training may be assessed by the changes in job behaviour and how these have affected the functioning of the organization in terms of output, productivity, quality.
Ultimate value-profitability, survival or growth.
3.5Skills involved in developing staff
Planning
Organising
Controlling
Communication
Problem-solving and decision-taking
Motivating and maintaining discipline
4Competence assessment and appraisal
Process of competence assessment
Competences are the critical skills, knowledge and attitude that a jobholder must have to perform effectively. A competent individual can be perform a work role in a wide range of settings over an extended period of time.
There are three types of competence.
Behavioural
Occupational
Generic
Some competence based systems are development led – they focus on the development of competence. Other systems are achievement led – they focus on assessment of competent performance.
Elements of a competence based system of assessment.
Establish the elements of competence
Activity, skill or ability required by the
Job-holder to do the job.
Corrective action for Establish the criteria of
Deviation from standard performance of the skill
Or ability required and set
Standard to measure it by.
Measure the performance
Against standard
Actual performance
4.2Staff Appraisal
Performance appraisal can be defined as “the regular and systematic review of performance and the assessment of potential with the aim of producing action programmes to develop both the work and individuals.
Systematic appraisal
Aids personnel planning
Allows performance and potential to be assessed
Highlights training needs
Contributes to the setting of objectives and reward levels
The training needs identified could be relating to work quality, work quantity, or managerial skills and competences.
Effective appraisal identifies and rewards good performance, sets motivating challenges, and encourages creative thinking.
Problems with appraisal are that criticism made can result in deterioration of future performance if the appraisee reacts badly.
To avoid these problems the appraisal process must be:
Carried out professionally
Have clear procedures
Be objective and fair
Conducted by managers trained in appraisal skills
There are a number of staff appraisal process methods in use. These include:
Review and comparison method
Management by objectives
Task-centered method
4.3Appraisal criteria
Whatever method is used the objectives set and the results required must relate to:
Job description
Personnel specifications
Salary grading
The appraisal criteria may include the following:
Volume of work
Knowledge of work
Quality of work
Supervisory or management skills
Personal qualities
Job performance criteria should be measurable, capable of differentiation, open to influence from the jobholder and acceptable to those being assessed.
Appraisals should be fair, consistent and disciplined in approach, relying more on objective than subjective input and aiming to help the appraisee consider future planning.
Question 4
You have been asked to write a report on performance appraisal systems and in it you have been asked to describe the following:
Required
a)The purpose of an appraisal system (4 marks)
b)The objectives of appraisals from the viewpoint of:
The individual (3 marks)
The organization (3 marks)
c)The barriers to effective appraisal (5 marks)
(25 marks)
Answer Plan
‘5Conducting the appraisal interview
5.1Appraisal process
Appraisal acts as an information processing system providing vital information for:
Reviewing past performance
Assessing future potential
Setting performance objectives
Improving performance
Identifying training needs
Assisting career planning decisions
Assessing salary levels
The process of appraisal usually entails:
Clarifying a person’s job
Assessing competence
Interviewing the job holder
Identifying and agreeing future goals and targets
Agreeing action points
Giving regular feedback
Appraisal will be motivating if it includes positive reinforcement and equitable rewards.
5.2The appraisal interview
An appraisal interview may rate performance, highlight strengths, set targets and discuss potential.
The key skills required to perform an appraisal interview are:
Questioning and listening
Persuasion
Negotiation
The communication strategies used in the interview may be
Tell and Sell
Tell and Listen
Problem Solving
Preparation for an appraisal interview should include:
Collection and completion of the required documentation
Planning what is to be said
Planning when and where the meeting is to be held
During the interview itself there will be a need to utilize communication skills such as:
Use of open and closed questions where appropriate
Allowing time for the appraisee to ask questions
Encouraging conversation
Listening carefully
Handling delicate areas with care
There must be a clear and shared understanding of the outcome of the discussion with all parties knowing how, when and by whom actions plans are to be progressed.
It is important to remember that appraisal is a continuous process not just a one off annual event.
Question 5
You have been asked to develop a training programme to prepare senior management for appraisal interviewing.
Required
a)What should be included in the training programme about preparing for an appraisal interview?(8 marks)
b)Identify the key skills needed to carry out the appraisal interview effectively (7 marks)
(15 marks)
Answer Plan
Question 6
“To appraise a subordinate and his performance is part of the managers job. Indeed, unless he does the appraising himself, he cannot adequately discharge his responsibility for assisting and teaching his subordinates” (Drucker)
Required
How far do you agree with the views expressed in this quotation. Why, in practice, do managers seem to avoid performing their appraisal duties conscientiously? If you were a personnel manager, what steps would you take to encourage managers to take performance appraisal more seriously. (15 marks)
Answer Plan
Rewards and appraisal
by Dr John Ball04 Sep 2001 Professional SchemeRelevant to Paper 1.3
Understanding what motivates people is necessary at all levels of management. It is of particular relevance in the accounting environment because technicians are usually supervisors and relationships are often on a personal, one to one basis. Technicians must understand the relevance of individual motivation; unless individuals are well managed and motivated they are unlikely to work to achieve the organisations objectives.
Motivation is frequently based on reward. Many writers describe rewards as having basically two dimensions – intrinsic and extrinsic.
Intrinsic rewards are to a great extent within the control of the individual. They include feelings of personal satisfaction, a sense of achievement, status, recognition, the opportunities for advancement, responsibility and pride in the work. This form of reward forms part of Maslow’s higher order thinking on motivation and is also often seen as akin to Herzberg’s motivators (or ‘satisfiers’); that is those factors directly concerned with the satisfaction gained from the job itself.
Extrinsic rewards on the other hand are those forms of reward which are outside the control of the individual and at the disposal of others; sometimes the individuals superior but more often the organisation itself. Extrinsic rewards can be ‘seen’ and are akin to Herzberg’s hygiene (or maintenance) factors. Because extrinsic rewards are obvious and can be ‘seen,’ not only by the individual concerned but by others, lack of attention can lead to job dissatisfaction and motivation problems. They include such simple matters as salaries and conditions, incentive arrangements (which are discussed later), share schemes, pension schemes, insurance and wider facilities such as creches. Surprisingly, these simple factors are often overlooked by management and can lead to problems in the workplace – even more so if other organisations are seen to be providing better rewards.
Reward systems have to be consistent, transparent and understood. Above all they should be equitable and seen to be fair. But they do not exist for their own sake, they are useful in assisting management in other ways. Prospective employees will wish to know whether a reward system exists and to understand it’s characteristics. For the organisation, a reward system aids recruitment and retention and ensures that employees work to a known and consistent standard. A well thought out reward system will reflect the nature of the post and task and recognise the skills and experience required to fulfil that particular post. A well constructed reward scheme will motivate employees, increasing commitment and effort.
Rewards are of course about performance. This is now an issue across all sectors of business and is not confined to the traditional manufacturing sector. Activities in business once seen as being beyond any kind of reward or bonus are more and more subject to “appraisal.” But how does this work? Appraisal systems are increasingly becoming an everyday part of business life yet remain misunderstood and badly managed.
In some industries, especially manufacturing, a reward scheme can be based on relatively simple matters such as the amount of production achieved within a specific timescale.
Such schemes can not of course apply to services such as accounting. Thus over the years, many service sector concerns (and indeed service departments within manufacturing) where traditional ‘bonuses’ do not readily apply, have adopted performance related pay as a method of reward. Appraisal systems do not of course necessarily occur only for performance related pay schemes. However – and this really is very important for all concerned – performance related pay must be related to some form of formal appraisal.
Appraisal systems are often misunderstood and mismanaged, especially if they form part of the duties of supervisors and lower level managers. All concerned must understand the background to, and the objectives of, the appraisal system.
The appraisal system should be a well constructed scheme which is fair to both individual and organisation. It must be accepted and understood that appraisals are formal events, and that the manager or supervisor carrying out the appraisal must be the appraisee’s immediate superior. It provides an opportunity to both look back at past achievements (and failings) and to look forward. Overall however, appraisal systems exist to improve organisational efficiency by ensuring that individuals perform to the best of their ability and develop their potential. This leads in turn to improved organisational performance.
For the individual being appraised, the appraisal has distinct advantages. It establishes the individual’s activities in relation to the overall objectives of the organisation. It provides key results which the individual needs to achieve within work within an agreed time scale. It compares the individual’s past performance and future activities against an agreed standard and of course provides the basis for performance related pay schemes.
The appraisal is by its very nature two sided. For the business organisation for which the individual works, suitable promotion candidates can be identified and trained, areas of overall organisational improvement can be seen and – in theory at least – communication is improved. For many organisations, the appraisal provides a basis for medium to long term human resource planning whilst at the same time, measures selection processes against results.
Understanding the importance of appraisals
by John Ball27 Apr 2004 Professional schemeRelevant to Paper 1.3
Appraisal systems are often misunderstood and mismanaged. Appraisals are central both to human resource management and performance management. Understanding their role, objectives, benefits and purpose is important to all employers. Careful preparation and understanding is required if the appraisal process is to be successful, worthwhile and relevant. Appraisal systems exist to improve organisational efficiency by ensuring that individuals perform to the best of their ability, develop their potential, and earn appropriate reward. This in turn leads to improved organisational performance.
Appraisals have three main purposes. These are often misunderstood. The first is to measure the extent to which an individual may be awarded a salary increase compared with his or her peers. This is the reward review component.
The second purpose of an appraisal is to identify any training needs and, if appropriate, to provide training and development to enable an individual to help the organisation to achieve its objectives. This is the performance review component. Finally, appraisals are also important to aid an individual's career development by attempting to predict work that the individual may be capable of in the future. This is the potential review component.
Employees often question the value and usefulness of the time and effort taken up by an appraisal. However, it establishes key results that an individual needs to achieve within a time period while also comparing the individual's performance against a set and established standard. The employee is not the only beneficiary - the organisation benefits through identifying employees for promotion, noting areas for individual improvement, and by using the system as a basis for human resource planning.
Conducting the appraisal interviewThere is often misunderstanding as to how an appraisal should be conducted. Appraisees sometimes perceive their annual appraisal as a threat. However, this can be overcome if the appraisal system is well-constructed, and seen to be fair to the individual and consistent across the organisation. A typical negative response to appraisals is that they are confrontational. This is often due to a lack of agreement on performance or poor explanation by management. Additionally, it is sometimes seen as a judgement - a one-sided process based entirely on the manager's perspective. At the other extreme it is simply regarded as a chat.
Perhaps the greatest problem with appraisals is that they are often regarded as a nuisance. At best, appraisals may be considered an annual event, the results of which quickly become out-of-date. Moreover, some may view the whole process as bureaucratic - a form-filling exercise devised to satisfy the organisation. Consequently, the main purpose of an appraisal - that of identifying individual and organisational performance and improvement - is forgotten.
Basic to the successful application of appraisal systems is the appraisal interview. A formal appraisal interview is an integral part of appraisal and performance management. The interview must be organised properly and carefully. Prior to the interview, the appraiser, who should be the immediate supervisor, must prepare the correct and relevant documentation. This comprises the job description, a statement of performance or appraisal form, and a record highlighting the employee's performance. Other relevant documentation used at an appraisal can include peer assessments, if appropriate, comments from clients and customers, and any self-assessment forms issued to the employee prior to the interview. Finally, the individual's employment file should be referred to. This should contain notes on the employee's general personal attitude and any disciplinary issues.
Appraisal methodsMany writers and practitioners in people management take one of three basic approaches to the appraisal interview. The so-called tell and sell method involves the appraiser explaining how the assessment is to be undertaken, gaining acceptance for the evaluation and improvement plan. Interpersonal skills are important with this approach to motivate the appraisee. An alternative approach is the tell and listen method, where the appraisee is invited to respond to the way that the interview is to be conducted. This requires counselling skills and careful encouragement to allow the appraisee to participate fully.
Finally, there is the problem solving method, where a more helpful approach is taken which concentrates on the work problems of the appraisee, who in turn is encouraged to think through any problems. After the interview, both parties should agree on any actions to be taken, an agreed action plan on improvement, and methods of monitoring progress and appropriate feedback.