Training & Management Development

Session 3

Human and Social Capital

Human Capital - individuals skills, knowledge and expertise
Developed via formal training and education Source of competitive advantage to individuals/organisations

Social Capital - network of relationships that can be used for the good of the individual/collective
Network of formal and informal ties Trust facilitating co-ordination & co-operation for the mutual benefit High quality relationships

Definitions
TRAINING - process of improving the skills and knowledge of employees in order to improve their performance on current job DEVELOPMENT learning that is not necessarily related to employees current job but prepares them for other positions in the organization MANAGEMENT DEVELOPMENT any attempt to improve current/future management performance by imparting knowledge, changing attitudes or increasing skills

Comparative MD
US/UK - focus on general management; training corrects individual weaknesses and contributes to business strategy and performance Continental Europe - leaders are born not made innate ability/personality as the most important factor in making an effective manager Germany - management is about functional specialism and technical skills China - discursive and group work methods of western management development clash with culture of conformity, social status and position of the expert

National approaches
VOLUNTARIST (UK, Sweden, Australia) Employers train to meet business objectives; market mechanisms operate to balance the supply and demand for training
Lower productivity; slower adoption of new technology

FUNCTIONALIST (Germany, France) Government regulates /legislates the degree to which employers provide functional/educational training
Surplus of blue workers; low flexibility; ill-suited to demands of globalisation

Management Development in UK
2513 Euros spend per manager per year
(less than half what Germany spends; only Romania spends less)

74% of organisations claim to have a dedicated training budget Only 47% of organisations have an HR rep. in the boardroom
(Methodology: 2 year study of 700 private sector firms from manufacturing, transport and services; report by The Chartered Management Institute, July 2004)

European and Asian resistance to US case study method (Saner & Yiu, 1994)
Anglo-Saxon - teacher as a Catalyst; solution brain
storming; innovation-oriented thinking

Germanic - teacher as an Instructor; transferring of

rules and procedures; application-oriented thinking

Asian- teacher as a Referee; clarifying of norms and

sanctions; learning to think independently of Confucianist principles

Eastern Europe - teacher as a Gate Keeper; exploring

relation between enterprise & environment

Who owns your learning and development?

Who benefits from your learning and development? Who pays the costs of your learning and development?

Dilemmas
Development of employees - costs or investment? Training makes employees more valuable but in the same time more marketable Problem of transferable and nontransferable skills Clash of individual needs with organizational goals

Training of multi-skilled workforce

Off- the-job training (classroom instruction; audiovisual; e-learning; simulations) On-the-job training (apprenticeship; internship; action learning, job rotation, secondments) Systems of career management (coaching; mentoring) Self-development (self-assessment) Collaborative training methods and team training

Management Development
Systems/practices that facilitate MD: appraisal, career planning, fast-tracking
Top 3 methods: internal skill training; external public courses; mentoring and coaching (e-learning as the least favoured method) Qualification based MD programmes Investment in MD are triggered by changes in the external environment, business need and HR strategy

Leadership Development
Companies with very disciplined and rigorous approach to leadership development produce more talent Jobs, bosses, hardships and special projects are considered the most useful Formal training and education has limited impact Leaders are born and made: successful performance is attributed to experience and coaching rather than in-born talent and early-life experiences Feedback sessions with subordinates

Strategic training
Alignment with organisational objectives
from a separate stand alone event to a fully integrated strategic component

Senior management support and involvement of line managers

Encouraging employees to accept change

Integration with HRM policy

Drawing on information from performance management and measurement Quality of programme design and delivery

Training and performance: Evidence

Positive impact on product quality, product development, market share, sales growth
(Kalleberg & Moody, 1994)

More investment related to higher profit

(dArcimoles, 1997)

Positively related to trust in decisionmaking and employee security (Boselie et al. 2000)

Training policy
The organisations underlying philosophy Who is eligible What the process is for identifying training needs What types of training are available and on what basis What the balance should be between on and offthe-job training Appeal mechanism for employees

Training effectiveness
(Kirkpatrick, 1959;1996)

Training session:
1. Reaction (to programme; to teacher) 2. Learning (grading; exams; coursework)

Transfer of learning to the workplace:

3. Behaviour on employee level (activity sampling;
observer diaries; self-recording)

4. Results on organisational level (productivity; outputs

and costs)

From learning to results

Challenging job and assignments
Supportive work environment
Social support (supportive social interactions and relationships) Supervisory and peer behavior encouraging independence and innovation

Organizational climate:
Continuous learning culture (emphasis on innovation and competition)

Training measurement: Difficulties

Bias learning as a main criterion of training effectiveness Intangible and non-measurable effects Long-term effects Weak link with performance
A substantial decrease in effects from learning to results criteria due to situational factors/constraints Modest correlations among different measures of training effectiveness (i.e. high learning does not mean high results)

Coaching versus mentoring

COACHING - Conducted by immediate supervisor; showing people how to apply knowledge they already possess (Conway, 1994)
i.e. direct supervisors cannot be good mentors (conflict between treating all subordinates equally and the need for treating protege differently and better)

MENTORING - Older individuals serving as role models and providing career guidance, task assistance, and social support to younger colleagues (Kram, 1985)
i.e. mentor might counsel a protg with personal problems to cut down on work hours while direct supervisor will have different priorities

Executive coaching
Coach - a person who works with others to develop and implement strategies to improve their performance (Hall et al. 1999)
not the employees supervisor and does not participate in distribution of reward to that employee the external agent with experience, expertise and credentials (confidentiality and politics issues)

Mentoring
Impacts on the speed of assimilation of proteges, their commitment, advancement, salary progression, reduction of stress and anxiety
It is seen as an entitlement Ideological belief that young adults who do not have mentors are seriously disadvantaged

Mentoring can build a sense of dependency that hampers their proteges to function independently later in their careers

Toxic Mentors and Toxic Proteges

(Feldman, 1999)
Mentors who are seeking proteges for political support rather than technical are likely to form dysfunctional relation

Protegees who are seeking mentors for social support rather than task support are likely to form a dysfunctional relation
Use of deceptive impression management techniques by both parties The more public relationship the greater commitment to dysfunctional relation