Chapter 4 Training and development

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Teachers Guide
This case highlights the importance of training in improving employees performance. Such improvement will eventually lead to better performance for the company as a whole. Students are also given an opportunity to think about various ways to improve employees skills and competencies.

Think It Over
1 Toms inadequate management skills may hamper his ability to lead, guide and motivate his subordinates. He may not be able to provide instructions to them and help them solve problems. Also, he cannot coordinate his subordinates to jointly work towards the companys objectives. The operation of the company will thus be adversely affected. Toms poor Putonghua makes it hard for him to communicate effectively with his suppliers in the Mainland. This may adversely affect the companys ability to source quality merchandise. As a result, the company will not be able to provide quality goods to customers. It may lose business. 2 (a) The following may improve Toms management skills: Tom can attend in-house management training workshops. He can take courses in management skills organised by external organisations (e.g., the Hong Kong Management Association). David can coach Tom and share his management skills with Tom. (Any other reasonable answers) (b) The following may improve Toms Putonghua: Tom can attend Putonghua classes organised by external bodies (e.g., HKU SPACE). The company can hire a Putonghua instructor to provide a short-term in-house Putonghua course for Tom. (Any other reasonable answers)

Regarding Putonghua training, an oral or written test can be conducted in class to evaluate the effectiveness of the course (learning evaluation). David can also conduct the assessment himself by exploring the changes in Toms behaviour (behaviour evaluation). For example, he may talk to the companys Mainland suppliers to see if they perceive any improvement in Toms Putonghua.

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Regarding management skills, David can directly observe the changes in Toms work behaviour after his training (behaviour evaluation). He may also supplement his own opinions by further talking with Toms subordinates and colleagues from other departments.

Teachers Guide
For both Putonghua training and management skills, students may propose reaction evaluation to evaluate the effectiveness of the training. David can ask for Toms opinions about the training programmes. This would enable David to find out if Tom likes the training programme and perceives them as being useful.

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Teachers Guide
Draw students attention to the differences between training and development.

Additional Information
All firms, whatever their size, will have to provide some forms of training if their human resources are to be used properly. Even small firms who tend to recruit readily trained staff will need to train existing staff to cope with new systems. New staff may also need training regarding the details of the work they are expected to do. The main difference in the training offered by small and large firms is likely to be the degree of formality involved. Large companies tend to have a comprehensive training programme. A special training manager may be hired to coordinate all of the companys training programmes. In contrast, it may not be economical for small companies to spend money on special training. The only training available at small companies may be on-the-job training. Small firms may also rely on outside organisations to provide training.

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Additional Information
Employees can often gain from training. The advantages of training for individual employees may include: A stronger sense of belonging and commitment towards the company Improved levels of motivation Greater level of confidence, leading to an improved sense of well-being Greater self-fulfilment and achievement Enhanced competitiveness in the job market
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Check Your Progress

Q1 PCCW can provide training for its technicians to equip them with the needed technical skills and knowledge. The quality of repair and installment services will thus be enhanced. PCCW can also provide training for its hotline service staff to enhance their product knowledge and service manner. The hotline service staff can then provide prompt and accurate answers to customer enquiries in a courteous way. This will greatly enhance customer satisfaction and the firms corporate image. Hence, training and development can enhance employees service manner and skills so that the company can provide higher quality service to its customers. (Any other reasonable answers) Q2 Proper training at the Centaline Property Agency can improve its agents professional knowledge (about property transactions) and service manner. This will enhance their confidence and competence in handling property transactions for clients, and eventually enhance their work performance and job satisfaction. They can obtain more sales from customers and their commissions will increase. They will also have better promotional prospects. All of these are conducive to higher levels of employee morale. Q3 The purposes of training may include: improving employees and ultimately the companys productivity improving a companys product or service quality ensuring the health and safety of employees facilitating employees personal growth improving employees morale promoting a harmonious working relationship within a company satisfying the companys current and future needs (Any three of the above)

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Additional Information
Managers can determine training needs by the following means: Analysis of job requirements: Managers can examine the skills or knowledge specified in the job analysis of a given job. Employees who lack the appropriate skills or knowledge will have to undergo training.
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Organisational analysis: Managers can analyse the companys performance and its success in meeting its goals. For example, members of a department with a poor sales record might need additional training. Survey of personnel resources: Managers may ask other managers, as well as non-managers, to describe what problems they are experiencing in their work and what actions they believe can solve the problem.

Check Your Progress

Q4 In order to expand its business in the Mainland, this casual wear chain store will have the following training needs: Language and communication skills: Some salespeople at the Hong Kong chain store will likely be promoted as supervisors and stationed in the Mainland. They should have a good command of Putonghua. They should also acquire some knowledge of the Chinese working culture and should learn how to communicate with local subordinates and colleagues. Sales and technical skills: Since the chain store is likely to hire local (Chinese) people to be salespeople at the Mainland store, proper training in sales skills, store display and

keeping inventory are all essential. Company culture: Since local employees are likely to be unfamiliar with the mission and corporate culture of the chain store, appropriate training/orientation in these areas is also needed to get them accustomed to working at a Hong Kong-based company.

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Additional Information
For the sake of simplicity, companies often use reaction evaluation to evaluate the effectiveness of training. While getting trainees reactions may directly tell the company how the employees feel about the programme, this cannot provide much insight into what the trainees have actually learned. It is also uncertain how the training will affect their job performance. Thus, companies may combine reaction evaluation with other evaluation methods to supplement the trainees feedback.

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Additional Information
The manager should follow the guidelines below when conducting behaviour evaluation: A systematic evaluation should be made on the trainees actual job performance. The trainees pre- and post-training job performance should be compared to see if there is any significant change (i.e., improvement).

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Additional Information
Slightly different from behaviour evaluation, result evaluation compares the pre- and post-training performance of an organisation (instead of trainees). After the evaluation, the manager can determine if the training programme is helping the company operate more effectively.

Check Your Progress

Q5 The company can use reaction evaluation to evaluate trainees attitudes towards the course. This can be done by using a preset questionnaire. The questionnaire should be distributed upon the completion of the course to gather trainees responses concerning various important dimensions of the course (e.g., course content, usefulness, communication skills of the instructor, attractiveness of the course, etc). Q6 If the salespeople really benefit from the training programme, their selling techniques would improve. This improvement would be reflected in enhanced sales performance. Hence, the management of the company can monitor the sales generated by the course attendees. They can check whether there has been any significant increase in sales revenues since the salespeople completed their training programme. Q7 Three major stages are involved in a systematic training function. These are the assessment stage, training and development stage and evaluation stage. The company should first assess its training needs and then formulate the corresponding training objectives (assessment stage). After formulating the training objectives, the company can select, design the most appropriate training modes and deliver the training to the trainees (training and development stage). After delivering the training, an evaluation should be conducted to assess the usefulness of the training (evaluation stage).

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Additional Information
Coaching is most appropriate when an employee has to acquire skills quickly due to new technology. It can also be used when the manager wants to replace an employee. This form of training must be planned and monitored. Trainers should also give feedback to trainees. Coaching is expensive in terms of time. It may be undertaken by the line manager and can focus on special skills.

Additional Information
Job rotation is aimed at developing employees wider experience and skills. Employees will be
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more aware of the range of skills required by the company.

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Teachers Guide
Highlight the advantages and disadvantages of using on-the-job training.

Discussion Questions
1 The advantages of on-the-job training are: On-the-job training is usually inexpensive as it does not require expensive off-site facilities. Trainees can get immediate feedback on their actual job performance from their supervisors. Trainees can directly apply the skills and knowledge learnt to their work. (Any two of the above) Mike might encounter the following problems: It is questionable if experienced workers are really committed to training new workers. This might affect the effectiveness of the OJT. The experienced worker may be too busy to coach four workers at the same time. If they devote too much time to coaching the new workers, their work performance will be adversely affected. As different supervisors may have different skills and knowledge, the effectiveness of training may vary within the company. (Any two of the above) I would improve the on-the-job training programme as follows: Reduce the trainer-to-trainee ratio: The trainer-to-trainee ratio can be reduced (such as one trainer for two trainees) so that trainers can spend more time on each trainee. Decrease the trainers workload: As a matter of fairness, I should temporarily decrease the workload of those trainers so that they have more time to train new workers. (Any other reasonable answers)

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Teachers Guide
Highlight the advantage and disadvantage of using apprenticeship training.

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Check Your Progress

Q8 On-the-job training refers to having an employee learn a job by actually doing it. This is only part of apprenticeship training as the latter is a structured process that comprises both classroom and on-the-job training. Q9 A factory supervisor needs to be well-equipped with supervisory and interpersonal skills to manage workers. These skills are unlikely to be acquired simply by on-the-job training. Hence, apprenticeship training (which combines both classroom and on-the-job training) should be offered so as to enable the trainee to acquire both supervisory theories and hands-on experience more effectively.

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Teachers Guide
Highlight the advantages and disadvantages of using classroom training.

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Additional Information
Many employees like programmed learning. This is because it is interactive and thus their motivation to learn is greatly enhanced. Programmed learning can be delivered via computer or the Internet. Some companies also use their Intranets to facilitate programmed learning to eliminate distribution costs. It is also easy for companies to make changes in their training programme via the Intranet. Some companies even keep a database which shows employees progress in completing their training programmes.

Teachers Guide
Highlight the advantages and disadvantages of using programmed learning.

Check Your Progress

Q10 For example, PCCW would like to enhance its salespeoples knowledge of a newly launched product, e.g., Eye 2 Phone. As the knowledge (i.e., product features) to be learned is largely informative, PCCW may deliver the product information to its salespeople via classroom training. This is a quick and simple way to deliver knowledge to a large group of salespeople. (Any other reasonable answers) Q11 For example, AIA would like to help its insurance agents pass the insurance licence examination. It then develops a set of fully computer-based interactive programmed learning
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materials for them. This helps ensure that the employees fully understand the materials before proceeding to the more advanced sections. As insurance agents have irregular working hours, they can learn at their own pace, anytime and anywhere they find convenient. (Any other reasonable answers)

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Additional Information
Virtual reality is an advanced form of equipment simulation. This involves placing a trainee in a simulated environment that is virtually the same as the actual working environment. In virtual reality training, a trainee is required to put on special equipment (e.g., head gear, gloves) which controls what the trainee sees, feels and senses. The trainee achieves the learning goals through interacting with the objects in the virtual environment.

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Teachers Guide
Highlight the advantages and disadvantages of using simulated training.

Check Your Progress

Q12 Some companies use simulated training to train their managers because it is too costly to do on-the-job training for people in managerial positions. Companies will not suffer any financial loss from wrong decisions made in a simulated environment.

ASSESSMENT

Short Questions
4.1 Training is a learning process which aims to improve employees ability to perform their jobs. This process usually involves helping employees acquire the required skills, competencies, knowledge and work attitudes to perform their jobs more effectively. Development is similar to training and focuses on preparing employees to assume positions of greater responsibility in the future. Hence, development can be regarded as long-term training. 4.2 A human resources manager cannot be trained solely by classroom training. This is because the job requires a high level of interpersonal and communication skills for dealing with various kinds of internal members and external organisations. As most of these skills can only be refined through hands-on experience, classroom training alone may not be adequate.
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4.3

Evaluation helps the company understand the effectiveness of its training. The management can then decide if they should provide continuous training or if they need to modify or fine-tune the training. It is aimed at improving the effectiveness of the training on an ongoing basis. The three types of on-the-job training are: Special assignment: Lower-level employees are given first-hand experience in working on actual problems. For example, a worker may be allowed to operate a machine under the supervision of his supervisor.

4.4

Coaching: An employee is trained by an experienced worker or the employees supervisor. For example, if an accounting manager wants to promote one of the accounting officers to the position of assistant accounting manager, he may allow the officer to spend a year as his assistant. The officer will be closely supervised in acquiring all the job-related skills and knowledge relevant to the position of an assistant accounting manager.

Job rotation: This means that an employee moves from job to job at planned intervals. This gives the trainee exposure to a variety of jobs. As a result, he can acquire a variety of work-related skills to handle different jobs. For example, the management trainee of a bank may be rotated to work in different departments (e.g., billing, business development, retail banking department, etc.) during his first year of service in order to become familiar with all of the banking operations.

4.5

A high school might have the following objectives: Equipping teachers with skills to motivate students to learn: Learning can be a lifelong process and students should be encouraged to learn by themselves. This is the major objective of education. Empowering teachers to deliver learning materials in an effective and comprehensible manner: Without this skill, teaching will be less effective. Preparing teachers to deal with students who have emotional problems: Today, teachers need to deal with various students of diverse backgrounds and abilities. If they are unable to handle students with emotional problems, they will not be able to maintain classroom discipline. (Any other reasonable answers)

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Essay Questions
4.6 The company can evaluate the effectiveness of the training by learning evaluation. This involves evaluating what principles, skills and knowledge trainees have gained in their training programme. The evaluation can be in the form of a written test to see whether the financial planners have acquired knowledge about the products. This written test should be given soon after they have completed the training programme. HSBC can turn to behaviour evaluation to further evaluate if the financial planners have attained the required professionalism. It can explore if the financial planners show any changes in their work attitudes and behaviour upon the completion of the training programme. 4.7 Customer service hotline officers should be well-equipped with product knowledge and the skills to handle customers enquiries and complaints. Given the large number of officers (trainees) involved, classroom training could be an effective training mode. To maximise training effectiveness, the classroom training should include lectures as well as trainee-oriented activities. While lectures should focus on product knowledge and service skills theory, trainee-oriented activities (e.g., role playing, case studies) give the trainees an opportunity to put theories into practice in a simulated (or semi-simulated) working environment. 4.8 (a) At a Chinese restaurant, productivity can be improved when employees are equipped with the required skills to perform their duties. For instance, if frontline staff (waiters) know how to serve customers properly and are familiar with the procedures in cleaning, preparing a table, taking an order and billing patrons, this smooths the service delivery process. Moreover, if chefs and kitchen helpers have received proper training in occupational safety (e.g., placing cookware in the proper place, avoiding wet floors, etc.), they will be less likely to have accidents. Sick leave and absenteeism can be minimised. Consequently, this will lead to improved productivity at the restaurant. (b) Appropriate training and development can help ensure employees health and safety at the Chinese restaurant. For instance, if the restaurant provides training for its chef and kitchen helpers in occupational health and safety (e.g., placing cookware in the proper place, avoiding wet floors, etc.), employees will have the right working attitude and skills to avoid accidents. Employees can thus work in a safe and more enjoyable environment. 4.9 The HR manager at the casual wear store can identify his salespeoples training needs through performance appraisals. He can also use questionnaire surveys, focus groups or observation to further determine their training needs. In assessing their training needs, the HR manager
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should consider the following:

What problems are his salespeople facing in their job? What additional skills or knowledge do the salespeople need in order to perform their job better?

4.10 The three stages of a systematic training function are: Assessment stage: This aims to analyse whether there is a gap between the desired performance level and the current performance level. Once a significant gap is detected, managers have to determine what training should be given to their employees to bring their performance up to the desired level. At this stage, managers need to identify training needs and formulate the corresponding training objectives. In the case of a life insurance company, the manager may recognise that the sales revenues being generated by his salespeople are far below the desired level. Through a detailed analysis, he may find that the salespeople have poor sales skills. He may then want to provide training for the salespeople to strengthen their skills.

Training and development stage: This involves selecting and deciding on the appropriate training modes to achieve the stated training objectives. It also involves appointing a qualified trainer to deliver the training. With reference to the above example, the manager may hire an experienced business consultant (preferably a former successful salesperson) to conduct in-house training for these salespeople. The training should focus on improving their sales skills.

Evaluation stage: This involves receiving continuous feedback from trainees in order to assess the usefulness of the training programmes. Based on the evaluation results or feedback, the company can then reassess its training needs and fine-tune its training objectives and training programmes. In the above case of the life insurance company, the manager should determine how to evaluate the effectiveness of the training programme. He may use a questionnaire to collect the salespeoples opinions after they complete their training programme. He may also check if their sales performance has improved after taking part in the training programme. This information can help fine-tune the companys training programmes in future.

4.11 The benefits which the tour agencies can gain include: Tour agencies do not need to develop their own training programmes. This helps save on the costs of internal training.
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If the tour agencies employ qualified tour guides (i.e., those who have undergone training), their corporate image will be enhanced. A well-trained workforce can raise the tour agencies quality of service. With a higher quality of service, customer satisfaction can be enhanced. The tour agencies can increase their prices or profits as a result. It will be less likely that customers will complain to tour agencies if they have a well-trained tour guide. Less time will be devoted to handling customer complaints. The productivity of the company can be enhanced. Better qualified tour guides have more knowledge in avoiding accidents and protecting

customers. They are less likely to have accidents. Even if an accident occurs, losses and casualties can be minimised. Customers will also feel more secure about travelling with these agencies. As a result, more customers will be attracted to the tour agencies. (Any three of the above)

Case Analysis
4.12 (a) Jimmys problems in managing his salespeople are largely due to an improper training system. Due to the different sales practices of individual salespeople, newly recruited staff may not develop the right work ethic under the existing training mode. It is also likely that the salesperson in question may pass his malpractices to the new recruits. Moreover, as a salesperson who has resigned may not be committed to training, the effectiveness of the on-the-job training will also be hampered. (b) Classroom training is an important means of helping salespeople acquire and adopt the right selling practices. Such training can make them clearly understand the codes of conduct which they need to follow when approaching retailers. Coaching can also be used to further train newly recruited salespeople. The new salespeople will be led by an experienced salesperson (but not the one who has resigned). The training may last for six months to a year so as to equip the new salespeople with all the necessary knowledge and skills. (c) Behaviour evaluation can be used. Jimmy can explore changes in the salespeoples work behaviour. He can approach retailers (customers) and see if they have any comments on the sales practices of these employees. Or Result evaluation can be used. Jimmy can measure changes in the number of complaints. If complaints related to different price quotations and other malpractices are greatly
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reduced, Jimmy can gain concrete evidence about the effectiveness of the revamped training system. 4.13 (a) Training can ensure that Concorde Bags has the needed skills to support its business expansion in China. Since the business environment, practices and culture of the Mainland are very different from Hong Kong, the salespeople at Concorde Bags may not be familiar with them. Salespeople should acquire the relevant knowledge so that they can deal with Chinese customers to generate sales. Through proper training, Andrea can prepare and strengthen her human resources to sustain corporate growth. Derek needs to consider: What problems will these salespeople face when serving the Mainland market? What additional skills or knowledge will these salespeople need in order to serve the Mainland market? The training modes which Derek can use to train his salespeople are: Classroom training: Classroom training can be used to equip salespeople with knowledge about the business environment, practices and culture (e.g., customer needs) in China. Derek may consider sending his salespeople to attend appropriate training programmes provided by external organisations such as the Hong Kong Productivity Council and the Hong Kong Management Association. If these salespeople are not good at Putonghua, classroom training should also be used to train them. Coaching: Derek should consider hiring an experienced sales executive (probably an assistant sales manager who has work experience in the Mainland) to work on his team. This new member can then provide on-the-job training to his salespeople. He may coach the existing team members. These staff members can then acquire the necessary job-related skills and knowledge by observing the experienced sales executive. (d) Derek can evaluate the effectiveness of classroom training by learning evaluation. This involves evaluating what principles, skills and knowledge salespeople have gained in the training programme. The evaluation can be in the form of a written test to see whether the salespeople have acquired the relevant knowledge during the course of their training. Derek can use behaviour evaluation to evaluate the effectiveness of coaching. He can explore changes in his salespeoples work attitude and behaviour after the coaching. For example, he may talk to Mainland customers to gather their opinions about the salespeoples performance.

(b)

(c)

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Teachers Guide
For both classroom training and coaching, students may propose reaction evaluation to evaluate the effectiveness of the training. Derek can ask the salespeople for their opinions about the training programmes. This would enable him to find out if they like the training programme and perceive the training programmes as being helpful to them.

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