Chapter

The Training and

Development Process

Chapter Learning Outcomes

After reading this chapter, you should be able to:
• understand the meaning of performance management, training, development,
and human resource development
• describe the performance management process and the role of training and
development
• describe the benefits of training and development for organizations, employees,
and society
• discuss training and development in Canada
• understand and explain the role of the environmental and organizational context
of training and development and the human resources system
• understand the meaning of strategic human resource management (SHRM),
­strategic training and development (ST&D), and high-performance work
systems (HPWS)
• discuss the instructional systems design (ISD) model of training and development

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2 Managing Performance through Training and Development

TD Bank

Several years ago, TD Bank became concerned about The training program uses a blended learning
the growing number of robberies at its branches. It approach that includes e-learning, in-branch training
was clear that something had to be done to pro- sessions, and ongoing coaching. The e-learning
tect employees and customers. So in the summer of component focuses on what to do before, during,
2008, a needs analysis was conducted that included and after a robbery and includes video clips. It takes
focus groups, interviews, and surveys. about 30 minutes and has to be completed before
The needs analysis revealed the need to design the in-branch training. Employees also take a test
a training program that would focus not just on rob- that requires them to achieve a score of 80 percent
bery prevention but also on what happens afterwards. to receive credit for the course.
An outline was developed for a training program that The in-branch training program reviews the key
centred on three areas: the most common types of learning points from the e-learning training, and
robberies, what happens during robbery attempts, includes role plays and debriefing sessions. A second
and what processes and behaviours are considered in-branch session is provided six months later. In addi-
best practices in the financial sector. tion, each year employees are required to review the
The objectives of the training program were e-learning course, including a “what’s new” section.
to reduce the number of robberies, enhance risk- The program was rolled out in January 2009
management practices, improve robbery preven- and so far more than 21,000 employees have com-
tion, and reduce financial losses. The instructional pleted the Robbery Prevention and Awareness
designers worked with external subject matter training program and are now better prepared to
experts and networks to determine learning objec- face a robbery situation. Once the training is com-
tives and partnered with the RCMP and an armed pleted, participants and stakeholders give quantita-
robbery association in the United States to ensure tive and qualitative formal evaluations.
there was a good North America–wide perspective. As a result of the program, TD has seen a
That fall, the various components were reduction in the number of robberies, enhanced risk
designed, reviewed, deployed, and tested. By management practices and procedures, improved
November 2008 the program was piloted with prevention through ongoing vigilance, and greater
trainers; a train-the-trainer leader’s guide was devel- safety around customers and employees. In addi-
oped, followed by train-the-trainer sessions. tion, there was a 41 percent reduction in cash
The course content includes strategy tools, tac- losses in 2009 compared to 2008 and an 11 percent
tics for robbery prevention, procedures and actions decrease in the number of robberies.
to follow during a robbery, employee and customer In 2010, TD’s Robbery Prevention and
safety standards procedures, documentation and Awareness training program won a silver award for
communication strategies, and tips, tactics, and training excellence from the Canadian Society for
tools for dealing with trauma. Training and Development.1

Source: S. Dobson, “Learning to avoid the bad guys,” Canadian HR Reporter, Nov. 29, 2010, P. 24. Reprinted by permission of Canadian
HR Reporter; Employee Performance and Development, Developing our employees, [Link] (retrieved October 31, 2011).

TD Bank’s Robbery Prevention and Awareness training program is a great

example of the role and importance of training and development in organiza-
tions. It ensures that employees are prepared for robberies and that they and
customers will be protected. It is also an excellent example of how to design,
deliver, and evaluate training and development programs.
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 Chapter 1: The Training and Development Process 3

It is not hard to understand how investments in the training and develop-

ment of employees can improve an organization’s success and competitiveness.
In fact, later in this chapter you will learn how training and development benefits
employees, organizations, and society. But have you ever considered how the
training of employees can benefit you and impact your life?
Consider the emergency landing of an Air Transat Airbus on an island in
the Atlantic Ocean on August 24, 2001. With both engines dead and the lives of
293 passengers and 13 crew members on Flight 236 at stake, the pilots success-
fully made an emergency landing after gliding for 19 minutes without power.
The loss of power was due to a fuel leak in the right-side engine that
caused it to shut down. A chafing fuel line on the right-side engine, which had
recently been replaced, leaked during the flight. Although there was a leak in
the right-side engine causing a loss of fuel, the left-side engine should have
been sufficient to keep the plane in the air. However, fuel from the undam-
aged left-side engine tanks was pumped to the leaking right side, where it was
dumped overboard. This led to a loss of fuel in the left-side engine, which then
caused it to lose power as well. The Airbus would have been able to fly safely
with just the left-side engine operating had its fuel not been pumped to the
leaking right side.
According to Airbus, the maker of the twin-engine A330, Air Transat improp-
erly reconnected the main fuel line to the aircraft’s right-side engine when it
was changed four days before the near-disaster. The fuel line to the right-side
engine chafed against a hydraulic pipe that eventually cracked and created the
fuel leak. Air-safety investigators also blamed faulty mechanical work by Air
Transat mechanics as the cause of the fuel leak that led to the near-catastrophic
emergency landing.
Disaster was averted only by a skilled emergency landing by the pilots, who
were hailed as heroes for safely landing the plane. However, one of the pilots,
Captain Robert Piché, denied being a hero, stating that landing a plane with no
engines is “what you train for.”
Transport Canada fined Air Transat $250,000 and ordered the airline to
provide pilots and flight crews with special training on fuel management and
emergency landings. Senior Transport Canada officials and Air Transat top man-
agement agreed that the airline’s pilots would take special training sessions. Air
Transat also provided Transport Canada with a corrective-action plan to improve
the performance of maintenance that included human-factors training for all
technical personnel.2
In 2004, the official investigation into the incident concluded that the emer-
gency landing could have been avoided if the pilots had followed established
fuel-leak procedures. Accident investigators determined that a fuel leak was
turned into a near-disaster because the pilots failed to determine the problem
and then tried to correct it from memory rather than by following a computer
checklist which would have warned them of the possibility of a fuel leak. The
pilots believed the problem was a fuel imbalance so they pumped tonnes of
fuel overboard. According to the report, the crew did not correctly evaluate the
situation before taking action. At the time, there was no adequate training for
the pilots in dealing with a catastrophic fuel leak because it was considered a
remote possibility.3
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4 Managing Performance through Training and Development

Although we cannot say that inadequate training was the cause of this near-
disaster, we do know that training was required in order to prevent a similar
incident from happening again. We also know that experience and training had
a lot to do with the pilots’ ability to safely land the plane. Air Transat has since
reviewed its training programs and enhanced its maintenance and flight oper-
ations procedures. Its pilots are now required to attend a new training program
on the procedures for overseas flights, which includes a review of fuel manage-
ment. In 2005, Air Transat agreed to a settlement of $7.65 million to a group
of passengers who were aboard Flight 236 and had filed a class-action lawsuit
against the airline.4
This is just one of many examples that illustrate how the training of employees
affects our lives in ways that we are unaware of and seldom, if ever, think about.
Another example is the worst subway accident in Canadian history, in which
three people were killed and about 140 others injured when two trains collided
in Toronto on August 11, 1995. The subway operator, who was only on his second
shift, admitted he wasn’t ready to operate the train. Although he had successfully
completed the 12-day subway training course, he had wanted more instruction
behind the controls and was not sure he was ready to operate the train. At an
inquest into the accident, he said, “I really didn’t understand a lot of this stuff,
I really didn’t understand the mechanics of the train.”
Since then, the Toronto Transit Commission (TTC) has made many changes,
including the way it trains its drivers. For example, the 12-day driver training pro-
gram has been extended to six weeks and operators are now required to take three
days of additional training every two years. Emergency training is also required for
the recertification of all subway employees every two years. These changes, along
with others, have made the TTC one of the safest transit systems in North America.5
More recently, an investigation into the 2009 Air France accident in which
all 228 people aboard died concluded that the deadliest accident in Air France’s
history could be blamed on a poorly trained crew. According to the probe into
the accident, the crew made a series of fundamental errors that caused the plane
to plummet into the ocean off the coast of Brazil. The crew did not realize the
plane was stalled and they were insufficiently trained on how to manually handle
the aircraft. The investigators recommended an examination of existing pilot
training programs and to “make mandatory the creation of regular specific exer-
cises aimed at manual airplane handling.” They also recommended mandatory
training for learning how to recognize and recover from a high-altitude stall.6
As you can see, employees who are poorly trained can make mistakes that
result in accidents that threaten the public’s safety and well-being as well as the
employees’ own safety. And while these examples are among the most extreme,
it is important to recognize that poorly trained employees produce defective
products and provide poor service. Thus, training is of vital concern not just to
employees and their organizations, but to all of us who use public transportation
and purchase goods and services every day of our lives. Recall from the chapter-
opening vignette that TD Bank’s Robbery Prevention and Awareness training
program was designed in part to protect employees and customers.
For organizations, success and competitiveness are highly dependent
on training and development. In fact, continuous learning and education has
become a key factor for the success of individuals and organizations. Whether
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 Chapter 1: The Training and Development Process 5

an organization is adopting new technology, improving quality, or simply trying

to remain competitive, training and development is a critical and necessary part
of the process.
A report by the Conference Board of Canada on learning and development in
Canadian organizations concluded that continuous learning and the transfer of
knowledge are key factors in fostering creativity and promoting organizational
excellence.7 Not surprisingly, training and education is one of the distinguishing
characteristics of the best companies to work for in Canada.8
Therefore, it should not surprise you that organizations invest millions of
dollars each year on training and development. This textbook will teach you
about the training and development process and how to design, deliver, and
evaluate training programs.
In this chapter, we introduce you to the topic of training and development
and describe the training and development process. We begin with a discussion
of performance management, since training and development is first and fore-
most all about managing performance in organizations.

Performance Management
As the title of the textbook indicates, training and development is all about
managing performance. Performance management is the process of estab- Performance management
lishing performance goals and designing interventions and programs to develop The process of establishing
employees and improve their performance. This process signals to employees performance goals and
what is really important in the organization, ensures accountability for ­behaviour designing interventions
and programs to develop
and results, and helps to improve performance.9
employees and improve
Performance management is not a single event, like a performance appraisal their performance
or a training program; rather, it is a comprehensive ongoing and continuous
­process that involves various activities and programs designed to develop
employees and improve performance.10
As shown in Figure 1.1, the performance management process involves sev-
eral components that are closely related to each other. The starting point of the
performance management process is setting performance goals. Managers meet

F i g u r e    1.1
The Performance Management Process

Performance Performance
Feedback
Goals Evaluation

Employee Development

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6 Managing Performance through Training and Development

with employees and discuss performance expectations and agree on perfor-

mance goals. These goals usually stem from organizational or department-level
goals and objectives and ensures that employee goals are aligned with depart-
ment and organizational goals. Once the manager and employee have agreed
on goals, it is important for employees to receive ongoing feedback so that they
know whether or not they are accomplishing their goals.
In addition to informal feedback, a key part of the performance manage-
ment process is a formal performance evaluation. This usually involves the use
of a standard rating form on which the manager and employee (self-appraisal)
evaluate the employees’ performance on a number of behavioural/performance
dimensions and review the extent to which the employee has accomplished
his/her goals. The process then repeats itself with the setting of new or revised
goals.
A critical component of the performance management process is employee
development and the creation of a development plan for employees. This
involves programs and activities that are designed to help employees achieve
their goals and improve their performance. This is of course where training
and development fits into the performance management process. Employee
development can include formal training and development programs in the
classroom as well as on-the-job training programs such as coaching and
­mentoring.
Employee development is shown in the middle of Figure 1.1 because it con-
nects to all of the other components of the performance management process. In
other words, each of the components of the performance management process
provides information on the developmental needs of employees.11 For example,
when setting goals it might be determined that attending a training program will
help an employee achieve his/her goals. Thus, part of the goal-setting process
might include a development plan that will enable employees to achieve their
goals. Feedback might suggest the need for additional training to address an
employee problem or weakness. The formal performance evaluation identifies
employee strengths and weaknesses as well as areas that need improvement.
This has further implications for employee development and the creation of an
employee development plan that will set the stage for the next round of the per-
formance management process.12 Thus, each component of the performance
management process can identify an employee’s training needs and lead to action
plans for development.
In summary, although the evaluation of performance (i.e., performance
appraisal) is a fundamental part of performance management, a critical compo-
nent of the process is employee development and this requires effective training
and development programs.
Training
Formal and planned Training and Development
efforts to help employees
Training and development is one of the most important ways that performance
acquire knowledge, skills,
and abilities to improve can be improved in organizations. Training refers to formal and planned efforts
performance in their to help employees acquire knowledge, skills, and abilities to improve perfor-
current job mance in their current job.13 Training usually consists of a short-term focus on

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 Chapter 1: The Training and Development Process 7

acquiring skills to perform one’s job. You have probably experienced this type of
training, such as when your company sends you to a workshop to learn a soft-
ware package or to learn how to serve customers. The goal is to help you learn to
do your current job better.
As indicated at the beginning of the chapter, TD Bank’s Robbery Prevention
and Awareness training program is designed to provide employees with the
knowledge and skills required to effectively respond to robberies.
Development refers to formal and planned efforts to help employees Development
acquire the knowledge, skills, and abilities required to perform future job Formal and planned efforts
responsibilities and for the long-term achievement of individual career goals to help employees acquire
and organizational objectives. The goal is to prepare individuals for promotions knowledge, skills, and
abilities required to perform
and future jobs as well as additional job responsibilities. This process might future job responsibilities
consist of extensive programs such as leadership development, and might
include seminars and workshops, job rotation, coaching, and other assign-
ments. The goal is to prepare employees for future responsibilities and often
for managerial careers. You can read more about management development in
Chapter 14.
Training and development is part of a larger system and field that is known
as human resource development (HRD). Human resource development Human resource
involves systematic and planned activities that are designed by an organiza- development
tion to provide employees with opportunities to learn necessary skills to meet Systematic and planned
activities that are designed
current and future job demands. The main functions of human resource devel-
by an organization to
opment are training and development, organization development, and career provide employees with
development. The core of all three human resource development functions is opportunities to learn
learning. 14 necessary skills to meet
In summary, the creation of an organizational environment conducive to current and future job
learning and optimum performance is a fundamental first step in the process demands
of a performance management system. All systems are concerned with the goal
of improving organizational effectiveness through the improvement of human
resources. Key to the achievement of this goal is training and development, which,
as described in the next section, has benefits for organizations, employees, and
society at large.

Benefits of Training and Development

Organizations that invest in the training and development of their employees
reap many benefits. But so do employees and the society in which they live. In
this section, we describe the benefits of training and development to organiza-
tions, employees, and society. As you will see, training and development play a
critical role in the success of organizations, individuals, and society.

Benefits to Organizations
Organizations that invest in training and development benefit in many ways that
ultimately help them obtain a sustained competitive advantage. Training and
development can facilitate an organization’s strategy, increase effectiveness, and
improve employee recruitment and retention.

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8 Managing Performance through Training and Development

Strategy
The goal of all organizations is to survive and prosper. Training and develop-
ment 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 objectives. By linking training to an
­organization’s strategy, training becomes a strategic activity that operates in
­concert with other programs and activities to achieve an organization’s strategic
­business objectives.
At Providence Health Care, a Vancouver-based health care organization with
three hospitals and five long-term care facilities, training is an important com-
ponent of the organization’s people strategy to ensure that the right people, with
the right skills, are in the right roles.15

Effectiveness
There is a calculable benefit 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 attrition. Trained employees also pro-
duce higher-quality products and services.16 These benefits have a positive effect
on an organization’s competitiveness and performance.
The link between training and an organization’s performance is strongly sup-
ported by research. For example, a survey conducted by American Management
Association found that companies that expanded their training programs showed
gains in productivity and larger operating profits.17 In another study, a 10 per-
cent increase in training produced a 3 percent increase in productivity over two
years.18 A review of research on training and organizational effectiveness found that
training is positively related to human resource outcomes (e.g., employee attitudes,
motivation, behaviours), organizational performance outcomes (e.g., performance
and productivity), and to a lesser extent financial outcomes (e.g., profit, financial
indicators).19
In addition, research has found that companies that invest more in training
have higher revenues, profits, and productivity growth than firms that invest less
in training.20 Research by the Conference Board of Canada found that organiza-
tions that spend the most on training and development believe they outperform
their competitors on a number of performance indicators such as employee satis-
faction, customer satisfaction, profitability, and productivity compared with those
that spend the least on training and development.21 A recent study of companies
in South Korea found that those that invest more in workplace learning achieve
higher levels of learning outcomes (i.e., employee competence, labour produc-
tivity, and employee enthusiasm) and financial performance. In other words,
investment in workplace training influences organizational performance through
learning outcomes.22
Training has also been found to be more effective than other interven-
tions. For example, a study that compared the impact of human resource
practices to practices that place greater emphasis on operational initiatives,
such as advanced manufacturing technology, found that the human resource
practices were directly related to the productivity of 308 companies over
22 years while none of the operational manufacturing practices related to

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 Chapter 1: The Training and Development Process 9

productivity. Both empowerment and extensive training were related to pro-

ductivity and together they accounted for a 9 percent increase in value added
per employee.23
Training is so important for organizations that it can even make the difference
between business success and failure. To find out how, see Training Today 1.1,
“Training and Franchise Success.”

Employee Recruitment and Retention

Training and development is considered an effective tool for attracting and
retaining top talent, especially for employees under the age of 30 who consider
their career growth and professional development more important than salary.24
Training is often used by organizations to increase their attractiveness to
prospective employees and to retain their current employees. For many orga-
nizations today, training is the number-one attraction and retention tool. For
example, construction company EllisDon offers employees a range of courses
and programs through its EllisDon University (EDU), which is part of the com-
pany’s attraction and retention strategy.25
An organization that fails to provide training opportunities to its employees
will be at a disadvantage in attracting new employees and retaining current
ones. In one study, 99 percent of the respondents said that there are job areas
in which training would be useful to them, and in which training decreases their

Training To d ay 1.1
Training and Franchise Success

What makes a franchise a success? Why do some fran- and the length of training (the number of weeks that
chises prosper while others fail? To try to answer these franchisees underwent initial training).
questions, Steven Michael and James Combs examined The results indicated that all of these policy deci-
88 established restaurant franchisors in the United States. sions were related to franchisee failure or survival. In
Although the failure rate of restaurants is very high, particular, a franchisee was more likely to survive if the
the chances of success are greater if the restaurant is franchisee had prior industry experience, active owner-
a franchise. As a rule, franchises generally do not fail. ship, a lower royalty rate, exclusive territory guarantees,
After all, they benefit from consumer brand recognition, a brand name, and a longer length of initial training.
support from the franchisor, buying power, national The more robust and lengthy the training program
advertising, and many other factors. But the reality is for the franchisee, the more likely the franchisee was
that some franchisees do fail. to ­succeed. Franchises with the shortest franchisee
The reasons vary, so the authors considered a training programs were the most likely to fail.
number of policy decisions made by franchisors that can According to the authors, the results show that
influence the success of a franchisee such as franchise training can reduce the probability of failure and that
industry experience, active owner-managers, the royalty improving business skills through training might reduce
rate, exclusive territories, brand name development, the failure of other businesses as well.

Sources: S.C. Michael & J.G. Combs,”Entrepreneurial failure: The case of franchisees,” Journal of Small Business Management,
Vol. 46 (1), 2008, Pp. 73–90; W. Webb, “Training = franchise success,” Training, Oct. 2008, Vol. 45 (8), P. 54.

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10 Managing Performance through Training and Development

­ illingness to move to another company.26 Research conducted by the Conference

w
Board of Canada shows that organizations that spend more per employee on
training and development have significantly lower voluntary and involuntary
turnover rates.27
Not surprisingly, many organizations offer extensive training and
development opportunities to retain employees. For example, at Delta Hotels
and Resorts, employees are guaranteed ongoing training. If an employee does
not receive proper training, he or she can claim an extra week’s salary. About
30 employees a year receive an extra week’s salary. Delta has an employee
retention rate of 89 percent, which is considered one of the best in the hospitality
industry. In addition, hotel-school graduates are attracted to Delta because of the
training they will receive.28

Benefits to Employees
Training and development also has benefits for employees. These can be catego-
rized as internal or intrinsic to an individual, such as knowledge and attitudes,
and those that are external to an individual, such as salary.

Intrinsic Benefits
Trained employees benefit by acquiring new knowledge and skills that enable
them to perform their jobs better. Research has shown that training has a posi-
tive effect on employees’ job behaviour and job performance.29 In addition to
improving their knowledge and skills, trained employees also develop greater
confidence or self-efficacy (see Chapter 3 for a discussion of self-efficacy) in their
ability to perform their job. They describe feelings of increased usefulness and
belonging in the organization, and they seek out opportunities to fully exploit
their new skills and abilities.30 Trained employees also have more positive atti-
tudes toward their job and organization.31

Extrinsic Benefits
Extrinsic benefits include things such as higher earnings as a result of increased
knowledge and skills, improved marketability, greater security of employment,
and enhanced opportunities for advancement and promotion. A number of
studies have found that company-sponsored training programs increase workers’
wages by 4 to 11 percent.32 According to a recent study, immigrants to Canada
who have completed apprenticeship training are more likely to be employed and
to earn more money than immigrants who have only a high school diploma.33
Many workers who have been laid off attend training programs to acquire new
skills to obtain employment.34

Benefits to Society
Training and development also has benefits for society that extend beyond
the workplace. The training and development that organizations provide
for their employees helps to create an educated and skilled population that
benefits the economy and the standard of living in Canada.

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 Chapter 1: The Training and Development Process 11

Educated and Skilled Population

The knowledge and skills that employees acquire through workplace training
help to create an educated and skilled workforce. For example, some organiza-
tions offer literacy and numeracy training for employees who did not obtain it
through regular educational channels but who require it to perform their jobs.
This training also enables employees to function more effectively in their daily
lives and therefore has a number of societal benefits.
Employees who have participated in organization-sponsored training pro-
grams report using their new skills to better manage their personal lives. They
are more likely to be able to read instructions for assembling products and to be
able to calculate bills and expenses. They are also more likely to be able to find
employment if they are laid off or their employer closes a plant.

Economy and Standard of Living

Key to a country’s standard of living, incomes, and overall prosperity are its
productivity and productivity growth. Unfortunately, Canada’s economic per-
formance and competitiveness in the global marketplace has been declining.
In fact, Canada currently lags behind its major competitors in its productivity
growth and innovation. A strong Canadian economy and a high standard of
living requires an improvement in the productivity and innovation of Canadian
organizations.35
There are a number of ways to improve productivity, and one of them is
by improving the education and skills of the workforce.36 An improvement in
Canada’s productivity will have a positive effect on the economy and the standard
of living, and a key factor for improving productivity is education.
The federal government spends billions of dollars annually on education and
training because it sees a strong link between an educated workforce and a high-
wage economy. Countries with higher education levels have more and better
employment opportunities.37 Training investments also lead to job creation and
job opportunities.38
Of course, in order for organizations, employees, and society to reap
the benefits of training, organizations must invest in training and develop-
ment. In the next section, we discuss training and development in Canadian
­organizations.

Training and Development in Canada

In order to benefit from training and development, organizations must invest
in training their workforce and provide employees with training opportunities.
In Canada, over 11 million workers receive some type of workplace training
each year. In 2008, more than two-thirds (69 percent) of full-time employees
in Canadian organizations received training. Part-time and ­seasonal/contract
workers received less training (50 percent and 31 percent, respectively).39
Canadian organizations, however, have tended not to be leaders when it comes
to investing in training and development. According to the Conference Board
of Canada, Canadian organizations under-invest in training and ­development.40

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12 Managing Performance through Training and Development

For example, the total average investment in training and development across
all industries in Canada was reported to be $4.9 million in 2004.41 In the
United States, organizations spent about $171.5 billion on formal training and
­development programs in 2010.42
Canadian organizations also lag when it comes to the amount spent on
training per employee, which has been on a steady decline over the past decade.
In 2010, the total average direct investment in training per employee was $688
compared to $787 in 2008, $852 in 2006, $914 in 2004, $824 in 2003, $838 in
2002, $859 in 2000, $798 in 2001, $776 in 1998, and $842 in 1996. This spending
decline is evident in both the public and private sector and across all organiza-
tion sizes.43 By comparison, organizations in the United States spent on average
per employee $1,071 in 2010, $1,176 in 2008, and $1,540 in 2006. Between 2006
and 2010, Canadian organizations spent 64 cents on training and development
for every dollar spent by organizations in the United States. Organizations in the
United States currently spend about 40 percent more per employee on training
and development than do Canadian organizations.44
Investments in training, however, vary across sectors, regions, and
by ­organization size. For example, newer knowledge-based sectors
(e.g., ­technology and communications) spend the most (over $1,000 per
employee), while more traditional sectors (e.g., wholesale/retail, construc-
tion, ­manufacturing) spend the least. With respect to regional differences,
organizations in Quebec spend the most per employee while those in Atlantic
Canada spend the least. In terms of organization size, small and medium-sized
organizations (SMEs) spend more per employee on training and development
than do larger organizations.45
In addition, the average number of hours of training received by employees
at Canadian organizations dropped from 28 in 2008 to 25 in 2010. As shown in
Table 1.1, senior management and executives receive the most hours of training
(32) while non-technical employees receive the least (18 hours). Employees in
services (32 hours) and not-for-profit organizations (30 hours) receive the most
training, while those in wholesale/retail (22 hours) receive the least. By compar-
ison, employees in the United States receive 37 hours of training per employee
per year.46 Canada ranked second last on annual training days per employee in a
study that included 12 comparator countries.47
The average investment in training as a percentage of payroll in Canada has
also dropped to 1.51 in 2008 down from 1.55 percent in 2006 and 1.75 in 2004.
By comparison, organizations in the United States spend 2.25 percent of payroll
on training and development.48
Canadian organizations also spend less on training and development than
organizations in other countries, including those in Europe, Asia, and the Pacific
Rim. An international comparison of employee training ranked Canada 21st
in 2006, down from 12th place in 2002. Ten countries pulled ahead of Canada
between 2002 and 2006. According to the Conference Board of Canada, this
underinvestment in training and development might lead to a gap in essential
knowledge and skills. Further, if Canadian organizations are going to be able
to compete effectively, they must increase their investments in training and
development.49

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 Chapter 1: The Training and Development Process 13

Ta b l e 1.1
Training and Development in Canada

• Percentage of Canadian full-time employees who received training in 2008:

69 percent (Part-time employees received 50 hours and seasonal/contract
workers received 31 hours)
• Total average training investment per employee in 2010: $688.
• Total average training investment per employee by organization type in 2010:
private sector $713; federal/provincial/Crown $498; not-for-profit sector $705.
• Total average training investment per employee by organization size in 2010:
fewer than 250 employees $729; 250–499 employees $1,082; 500–1,499 employees
$433; 1,500 or more employees $734.
• Total average training investment per employee by level of unionization in 2010:
no union $720; low unionized $427; high unionized $770.
• Annual training expenditure per employee by region 2004–2008: Quebec $1,158;
Alberta $979; Manitoba/Saskatchewan $829; British Columbia $811; Ontario $802;
Atlantic provinces $611.
• Percentage of payroll spent on training in 2008: 1.51.
• Average number of training hours received annually per employee in 2010: 25.
• Average number of training hours received annually by employee category in 2010:
senior management and executive, 32; middle management, 27; ­supervisory, 28;
professional, technical, and scientific 29; trades, 25; non-technical, 18.

Sources: P.D. Hughes & A. Campbell, Learning & development outlook 2009: Learning in tough times,
Ottawa: The Conference Board of Canada, 2009; C. Lavis, Learning & development outlook 2011: Are
organizations ready for learning 2.0? Ottawa: The Conference Board of Canada, 2011.

Information about training and development in Canada is summarized in

Table 1.1. This information will allow you to compare your organization and
training experience against that of others. This information also highlights some
differences in training across job categories and industries. In the next section,
we consider how beliefs that training is an investment or an expense can influ-
ence spending on training and development.

Is Training an Investment Or an Expense?

Given the many benefits of training and development it is surprising that
Canadian organizations do not invest more, and it begs the question, “Why don’t
organizations invest more in training and development?”
One reason might be that learning and training is not considered a high pri-
ority in Canadian organizations. According to the Conference Board of Canada, the
decline in training investment and hours is an indication that learning is not a top
priority in many Canadian organizations.50 In fact, in 2010 Canada was 25th out
of 59 countries in the ranking of the importance organizations place on workforce
training, which is a drop from the 20th-place ranking Canada earned in 2009.
This ranking places Canada just behind China, and behind top-ranking countries
such as Japan, Switzerland, and Denmark, but just ahead of the United States,

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14 Managing Performance through Training and Development

which ranked 31st.51 In another study, Canadian executives were found to be less
likely than those in comparator countries to believe that training is a high priority;
Canada ranked 30th out of 55 countries that were surveyed.52
Another reason for the underinvestment in training and development is
the perception that training, learning, and development expenditures repre-
sent a cost rather than an investment. Many organizations view training and
development as an expense that can be cut in difficult times. According to
the Conference Board of Canada, many organizations in Canada view training
and development as a necessary operating expense or cost that should be
­minimized.53
Organizations that view training as a cost tend to limit their training invest-
ments to only what is required by law or necessary to survive. As a result, training
is often one of the first things to go when times are tough and there are cuts to
discretionary spending.54 Organizations that view training as an investment expect
direct benefits and a return on their investment. For these organizations, training
is part of the organization’s strategy and a key factor for its competitiveness and
success.55
This is not to say that there are no Canadian organizations that invest heavily
in training and development. In fact, there are large differences in the amount
spent on training and development across organizations and industries. The
Conference Board of Canada found that one in five organizations invests more
than 3 percent of payroll in training.56
BMO Financial Group invests more than $65 million per year in learning and
development programs that include a corporate university, orientation programs,
leadership, sales and service programs, and a tuition refund policy or “continuing
education assistance plan.”57 TD Bank invested $55.6 million in training in 2009.
The average number of days of internal training per employee was 3.88, and TD’s
investment in training per employee in Canada was $1,241.58
However, the overall trend in training investments in Canada is cause
for concern. According to the Conference Board of Canada, Canadian orga-
nizations are not investing enough resources in training, learning, and
­d evelopment at a time when skilled employees have become increasingly
vital to an organization’s success, and this threatens Canada’s competitive-
ness. Perhaps not surprisingly, Canada’s productivity growth lags behind that
of its main ­competitors.59
What can be done to increase training investments in Canadian organiza-
tions? What if organizations were required to invest a certain amount of money
each year on training and development? That is exactly what the province of
Quebec has been doing since  1995, when the government passed the Act to
Foster the Development of Manpower Training (often referred to by employers
as the “1 percent” or “training law”), making it the only payroll training tax in
North America. The law requires companies with payrolls of more than $1 mil-
lion to invest a minimum of 1 percent of their payroll on government-sanctioned
training, or pay that amount into a provincial fund. Companies with payrolls of
less than $1 million are exempt. The funds acquired from companies that do not
invest the 1 percent of payroll on training are placed in a government fund that
supports training initiatives in the province.60

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 Chapter 1: The Training and Development Process 15

A 2008 report analyzed the landmark law, concluding that it has had a
s­ ignificant effect on the way Quebec firms organize and deliver training, and has
resulted in substantial growth in adult learning and training over the last decade.
The main findings of the report are the following:
•• the legislation has had a significant impact on the way firms in Quebec
structure, organize, and deliver training
•• more companies are actively planning and implementing training
­programs for their employees
•• the participation rate in workplace training in Quebec increased from
21 percent to 33 percent between 1997 and 2002 (it increased from
29 percent to 35 percent in Canada), making it the fastest growth rate
in Canada and closing the gap between Quebec and other provinces,
although Quebec still lags slightly behind the national average in training
participation rates
•• employers, governments, unions, and community groups are working
together to find ways to promote learning and training61
As indicated earlier, a study by the Conference Board of Canada found that
organizations in Quebec spend on average more per employee on training and
development than those in other provinces, providing additional evidence that
the Quebec law has had a positive effect on training investments. To find out
how the legislation works, see The Trainer’s Notebook 1.1, “Quebec’s Payroll
Training Legislation.” To learn about an interesting way that some organizations
try to ensure they benefit from their training investments, see Training Today 1.2,
“Making Employees Pay for Their Training.”

1.1
Quebec’s Payroll Training Legislation

Companies in Quebec with payrolls over $1 mil- 2. If they have not spent at least 1 percent of
lion are required by law to spend 1 percent of their their total payroll on training, they must pay the
payroll on training, or pay a training tax. They must ­difference to the government, and that money is
also carefully document their training activities and then used to fund training programs in companies
complete government forms every February. Some that have invested at least 1 percent in training.
have complained that the process is too compli-
3. Companies must use accredited training bodies,
cated and choose to pay the tax rather than com-
instructors, and services that follow a code of
plete the forms even if they are providing some
ethics. All types of training are eligible.
training. The main aspects of the legislation are
as follows: 4. General information about the participation of
employees in training exercises must be ­provided.
1. Every February, companies must file paperwork in
which they indicate how they spent 1 percent of 5. Companies that meet the 1 percent training
their total payroll on training. ­investment can apply for provincial training grants.

Source: K. Harding, “A taxing way to train staff.” The Globe and Mail, June 4, 2003, P. C1, C6.

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16 Managing Performance through Training and Development

Tra i ning To d ay 1.2

Making Employees Pay for Their Training

Organizations that invest in training and development are sued the employee in small claims court for the ­prorated
often concerned that employees will leave the organization ­portion of the training costs.
soon after they attend a costly training ­program. When this Organizations, however, are not always suc-
happens, the organization is unable to reap the benefits cessful in recovering their training investments
of its training investment. In response, some organizations when employees leave after receiving training. For
now require employees to sign a training bond. ­organizations to successfully recover their invest-
A training bond is a contract between the ments in employee training, a number of factors need
employer and employee that states that the employer to be demonstrated: the employer’s intentions must
will pay for the employee’s training as long as the be made clear to the employee before he/she accepts
employee remains with the organization for a minimum the investment; the obligations incurred by the employee
period of time following completion of a training pro- should be expressed unambiguously and in writing; the
gram. If the employee fails to remain for the agreed- employee must be given adequate time to consider the
upon period of time then he/she must reimburse the consequences of making the commitment; the employee
organization for the cost of the training. should be given the opportunity to negotiate the terms;
In one such case an employee was hired as a chief the employee must be made aware the funds are being
pilot with the understanding that he would receive the expended for the benefit of both parties; the employee
necessary training and obtain a Transport Canada flight must not in any way be coerced into the arrangement or
check to fulfill his job duties. The employer agreed to be given the ­impression the commitment is not likely to
pay for the training and required the employee to sign be enforced; the provisions for recovery must be even-
a training bond. However, the employee resigned after handed and fair to both parties; and the training must be
six months of employment and refused to pay for the such as to enhance the employee’s own ­marketability in
cost of the training. The employer then ­successfully the industry in which he/she works.

Source: Based on T. Mitchell, “When the employer is the victim.” Canadian HR Reporter, Jan. 17, 2011, Vol. 24 (1), Pp. 13 –14.

Training bond The Context of Training and Development

A contract between
the employer and Training and development are embedded within a larger context that can influ-
employee that states ence the extent to which training and development is provided in an organiza-
that the employer will tion as well as the type of training provided. As shown in Figure 1.2, training
pay for the employee’s and development is just one part of a system of human resource practices that is
training as long as the influenced by internal and external factors.
employee remains with
The human resources system is influenced by environmental and organiza-
the organization for a
minimum period of time tional factors. Environmental factors such as legislation, the economic climate,
following completion of competition, demographics, and social values have an impact on organizations.
the training program For example, if a competitor introduces a lower-priced product, the organization
will have to decide whether to match the competitor’s actions or compete in other
ways, such as providing superior service. This strategic decision can in turn affect
costs, the ability to pay employees, and/or the need to train and reward employees
for effective performance. Events and concerns inside and outside an organization
can lead to the need for new knowledge, skills, abilities, and training programs.
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 Chapter 1: The Training and Development Process 17

F i g u r e    1.2
The Context of Training and Development
H
U
M
Laws A
N O
E
Technology Goals O R
E F
R HR Planning R G
N F
Demographics Values G Job Analysis E A
V E
A S N
I Compensation C
Strategy N O I
Labour Market R Recruitment Training T
I U INDIVIDUAL Z
O & I
Z Selection R PERFORMANCE A
Economy N Structure Development V
A Performance Appraisal C T
M E
T E I
Change E Culture Health and Safety N
I S O
N Labour Relations E
O N
T Leadership S
Competition N S A
S
HRMS Y L
Social Climate S
T
E
M

Sometimes sudden and unexpected changes in the environment can lead to

changes in organizations themselves and in human resources policies and practices.
For example, consider how concerns over terrorism have affected airport and flight
security training. The Transportation Security Administration in the United States
developed new guidelines for the training of baggage screeners and flight crews
and made airport security fully federalized. The training of baggage screeners now
includes technical training on metal detectors, X-ray scanners, bag searching, and
how to deal with difficult passengers and manage stress. Training was increased to
40 hours of classroom training and 60 hours of on-the-job training. Pilots and flight
attendants receive training on how to assess and react to ­dangerous ­situations.62
Other changes in training as a result of the threat of terrorism include a shift to dis-
tance technologies and e-learning and an increase in training programs on diver-
sity, security, stress management, and change management.63
Let’s now consider how changes in specific environmental and organizational
factors can impact the human resources system and training and development.

The Environmental Context of Training and Development

Some of the key environmental factors that drive human resources and training and
development are global competition, technology, the labour market, and change.

Global Competition
Increasing global competition has forced organizations to improve their produc-
tivity and the quality of their goods and services. Improvements in the produc-
tion process and quality initiatives almost always require employees to learn
new skills. And when Canadian organizations send workers on assignments
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18 Managing Performance through Training and Development

in foreign countries, they need to provide them with cross-cultural training so

they will be able to adapt and function in a different culture (see Chapter 13
to learn about cross-cultural training). Thus, global competition can require
numerous changes to human resource practices and the need for training and
­development.

Technology
Technology has had a profound effect on the way organizations operate and com-
pete. New technologies can provide organizations with improvements in produc-
tivity and a competitive advantage. However, such improvements depend on the
training that employees receive. Technology will lead to productivity gains only
when employees receive the necessary training to exploit the technology.64 Thus,
the adoption of new technologies will have a direct impact on the training needs
of employees who will be required to use the technology.

The Labour Market

Changes in the labour market can have a major effect on training and devel-
opment. For example, consider the implications of a shortage of skilled labour
in Canada. It has been estimated that a critical shortage of skilled workers in
Canada could reach 1 million by the year 2020. To deal with this looming crisis,
the country will have to change its approach to education and training.65 If orga-
nizations cannot hire people with the necessary knowledge and skills, they will
have to provide more training if they are to compete and survive. Changes in the
labour market and the supply of labour require changes in the amount and type
of training.

Change
The technological revolution, increasing globalization, and competition have
resulted in a highly uncertain and constantly changing environment. In order
to survive and remain competitive, organizations must adapt and change. As a
result, managing change has become a normal part of organizational life, and
training and development is almost always a key part of the process. This often
involves training programs on the change process as well as training that is part
of the change program. For example, if an organization implements a change
program that involves a team-based work system, then employees will require
team training (see Chapter 13 for a description of team training).

The Organizational Context of Training and Development

As indicated in Figure 1.2, training and development are also affected by internal
events within the organization. Among the most important internal factors are
an organization’s strategy, structure, and culture.

Strategy
Strategy is one of the most important factors influencing training and develop-
ment. As indicated earlier, training and development can help an organization
achieve its strategic objectives and gain a competitive advantage when it is aligned

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 Chapter 1: The Training and Development Process 19

with an organization’s strategy. The alignment of human resources practices

with an organization’s business strategy is known as strategic human resource Strategic human resource
­management (SHRM). Organizations that have greater alignment between their management (SHRM)
HR practices and their strategies tend to have superior performance.66 The alignment of human
HR practices like training and development can also be strategic rather resources practices with
an organization’s business
than independent or isolated activities when they are aligned with the orga- strategy
nization’s business strategy and therefore enable an organization to achieve
its strategic goals and objectives. Thus, strategic training and development Strategic training and
(ST&D) refers to the alignment of an organization’s training needs and pro- development (ST&D)
grams with an organization’s strategy and objectives. Whether an organization The alignment of an
has a strategy for quality, innovation, or customer service, training as well as organization’s training
needs and programs with
other human resources practices must be designed to reinforce and support an organization’s strategy
the strategy. and objectives
For example, if an organization decides to improve customer service or
product quality, then employees will require training to learn how to provide
better service or improve product quality. If an organization’s strategy is to
grow as rapidly as possible, then employees need to be trained in the manage-
ment of mergers, acquisitions, joint ventures, and international ventures. All
these growth components necessitate the building of new skills, and training is
required to do this.
Strategy is often a key factor driving the need for and type of training and
development in organizations. For example, several years ago Bayshore Home
Health, the largest provider of home and community health care services in
Canada, launched a workforce diversity strategy. A key part of the strategy
involved employee education about diversity that consisted of workshops
on cultural competence and specific diversity workshops to address local
needs.67
By linking training to business strategy, training becomes strategic rather
than an isolated and independent activity, and as a result it is more likely to be
effective. In fact, there is some evidence that training can lower an organization’s
market value when it is not strategically focused.68
Figure 1.3 depicts the role that strategy plays in the training and develop-
ment process. The model shows how an organization’s business strategy will
have implications for its HRM strategy. The HRM strategy will then influence the
organization’s strategy for learning and training, which will in turn determine
the type of training and development activities and programs required.

F i g u r e    1.3
A Strategic Model of Training and Development

Learning and Training and

Business HRM
Training Development
Strategy Strategy
Strategy Programs

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20 Managing Performance through Training and Development

Structure
The structure of an organization also affects training and development activities.
Organizations are increasingly becoming flatter, with fewer levels of management.
Employees are expected to perform tasks that were once considered managerial
tasks and so they must be trained in traditional managerial activities such as problem
solving, decision making, teamwork, and so on. Many organizations have experi-
enced dramatic structural changes such as downsizing and reengineering in an
effort to survive. These changes to an organization’s structure often lead to changes
in employees’ tasks and responsibilities and necessitate the need for training.

Culture
Organizational culture Organizational culture refers to the shared beliefs, values, and assumptions
The shared beliefs, values, that exist in an organization. An organization’s culture is important because it
and assumptions that exist determines the norms that exist in an organization and the expected behaviours.
in an organization The culture of an organization and its norms and expected behaviours are often
communicated to employees through training programs.
For example, ethical practices are deeply ingrained in the culture of Molson Coors
Brewing Company and are communicated to employees through the company’s ethics
training programs. The company’s training programs reflect a culture of integrity and
the importance of acting in an honest and trustworthy manner based on business
ethics and moral conviction.69 Thus, the training programs are consistent with the
company’s core values and are a catalyst for achieving its business goals.

The Human Resources System

The human resources system and other human resource functions also influence
training and development. In fact, in addition to being linked to business strategy,
human resources practices should also be aligned and linked to each other. Thus,
strategic human resource management involves two kinds of linkages. First, human
resource practices should be linked to business strategy, as discussed ­earlier.
Second, human resource practices should also be linked to each other so they work
together to achieve an organization’s strategy. Thus, what is most important is not
individual human resource practices but rather the entire system of practices and
the extent to which they are aligned with an organization’s strategy and with each
other. In combination, the practices form an integrated and tightly linked human
High-performance work resources system that is known as a high-performance work system.
system (HPWS) A high-performance work system (HPWS) consists of an interrelated system
An interrelated system of human resource practices and policies that usually includes rigorous recruitment
of human resource and selection procedures, performance-contingent incentive compensation, perfor-
practices and policies
that usually includes
mance management, a commitment to employee involvement, and extensive training
rigorous recruitment and and development programs. High-performance work practices increase employees’
selection procedures, knowledge, skills, abilities, and motivation. This leads to more positive attitudes,
performance-contingent lower turnover, and higher productivity, which results in higher organizational per-
incentive compensation, formance. An increasing number of studies have found that organizations with high-
performance management,
performance work systems have ­superior productivity and financial performance.70
a commitment to
employee involvement, In summary, external factors influence an organization’s strategy, structure, and
and extensive training and the way human resources are managed, and these factors in turn influence the design
development programs and delivery of training and development programs. Training and development should

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 Chapter 1: The Training and Development Process 21

be tightly aligned with an organization’s business strategy and the other human
resource practices in the human resources system. In other words, there should be a
good fit between strategy and training and development, and between training and
development and other human resources practices. In this way, training and develop-
ment is a strategic and important part of a high-performance work system that can
improve individual performance and ultimately organizational effectiveness.

The Instructional Systems Design (ISD)

Model of Training and Development
In this section, we describe a systems approach to training and development that
is known as the instructional systems design model. The instructional systems Instructional systems
design (ISD) model of training and development depicts training and develop- design (ISD) model
ment as a rational and scientific process that consists of three major steps: needs A rational and scientific
analysis, design and delivery, and evaluation.71 The ISD model is a streamlined model of the training and
development process
version of an earlier model of instructional design known as ADDIE, in which that consists of a needs
each letter represents a different action: analysis, design, development, imple- analysis, training design
mentation, and evaluation.72 and delivery, and training
According to the ISD model of training and development, the training process evaluation
begins with a performance gap. A performance gap is something in the organiza-
tion that is not quite right or is of concern to the organization. Perhaps customer
complaints are up, quality is low, market share is being lost, or employees are
frustrated by management or technology. Or perhaps there is a performance
problem that is making it difficult for employees or departments to achieve goals
or meet standards. If some part of the organization has a problem, or if there are
concerns about the performance of individual employees or departments, then
the problem needs to be analyzed. Recall in the chapter-opening vignette that
TD Bank was concerned about the growing number of robberies at its branches.
A critical first step in the ISD model is a needs analysis to determine the nature
of the problem and whether training is the best solution. A needs analysis is per-
formed to determine the difference or gap between the way things are and the way
things should be. As indicated in the chapter-opening vignette, TD Bank conducted
a needs analysis that included focus groups, interviews, and surveys and, based on
the needs analysis, it was realized that they had to design a training program that
would focus not just on robbery prevention but also on what happens afterwards.
Needs analysis consists of three levels known as an organizational analysis,
a task analysis, and a person analysis. Each level of needs analysis is conducted
to gather important information about problems and the need for training. An
organizational analysis gathers information on where training is needed in an
organization; a task analysis indicates what training is required; and a person
analysis identifies who in the organization needs to be trained.
Based on the data collected from managers, employees, customers, and/
or corporate documents, strategies for closing the gap are considered. Before
training is determined to be the best solution to the problem, alternatives must
be assessed. The solution to the performance gap might be feedback, incentives,
or other human resource interventions. If training is determined to be the best
solution, then objectives—or measurable goals—are written to improve the situ-
ation and reduce the gap. The needs analysis, the consideration of alternative

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22 Managing Performance through Training and Development

strategies, and the setting of objectives force trainers to focus on performance

improvement, not the delivery of a training program. Training is only one solu-
tion and not necessarily the best one to performance problems.
If training is the solution to a performance problem, a number of factors
must be considered in the design and delivery of a training program. The needs
analysis information and training objectives are used to determine the content of
a training program. Then the best training methods for achieving the objectives
and for learning the training content must be identified.
After a training program has been designed and delivered, the next stage is
training evaluation. The needs analysis and training objectives provide impor-
tant information regarding what should be evaluated in order to determine
whether a training program has been effective. Some of the critical evaluation
questions include: Did the training program achieve its objectives? What did
employees learn? Did employees’ job performance improve? Is the organiza-
tion more ­effective? Was it worth the cost? As indicated in the chapter-opening
vignette, once training is completed at TD Bank, participants and stakeholders
give quantitative and qualitative formal evaluations.
The purpose of all training and development efforts is ultimately to improve
employee performance and organizational effectiveness. Thus, it is important to know
whether employee job performance has changed and whether the organization has
improved following a training program. In this stage, the trainer has to decide what
to measure as part of the evaluation of a training program as well as how to design an
evaluation study. On the basis of a training evaluation, decisions can be made about
what aspects of a training program should be retained, modified, or discarded.
Figure 1.4 shows the instructional systems design model of training and
development. As we have described, each stage leads into the subsequent stage,
with needs analysis being the first critical step that sets the stage for the design
and delivery and evaluation stages. Also notice that there are feedback loops from
evaluation to needs analysis and training design and delivery. This indicates the

F i g u r e 1.4
The Instructional Systems Design Model of Training
and Development

Training Design
Needs Analysis and Delivery Training Evaluation
1. Organizational Analysis 1. Training Objectives 1. Evaluation Criteria
2. Task Analysis 2. Training Content 2. Evaluation Design
3. Person Analysis 3. Training Methods
4. Learning Principles

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 Chapter 1: The Training and Development Process 23

process is a closed-loop system in which evaluation feeds back into needs ­analysis
and training design and delivery. In this way, it is possible to know whether
performance gaps identified in the needs analysis stage have been closed, and
whether changes are required in the design and delivery of a training program in
order to make the training program more effective. Thus, training programs are
continuously modified and improved on the basis of training evaluation.
Although the ISD model is considered to be the best approach for managing
the training and development process, in reality many organizations do not follow
all of the steps of the ISD model. In other words, many organizations do not con-
duct a needs analysis; rather, they implement training programs that are not well
designed, and they do not evaluate their training programs. There has also been
some criticism waged against the ISD model in recent years among professionals
in the training industry who have seriously challenged its usefulness. However, if
used correctly it remains the best approach for managing the training and devel-
opment process.73 Training programs often fail because they have ignored an
important step in the process such as conducting a thorough needs analysis.
We will have more to say about each of the stages of the training and devel-
opment process as they are covered in the remainder of the text. For now, you
should understand the ISD model and the sequence of activities that are involved
in the training and development process. To learn more about how to apply the
ISD model, see The Trainer’s Notebook 1.2, “The Application of the ISD Model.”

1.2
The Application of the ISD Model

The instructional systems design model begins to how they should perform and how best to train
when somebody identifies a performance gap in the them (e.g., training methods).
organization. According to the ISD model, the rec-
4. Design a training program using those methods
ognition of a performance gap should lead to the
and approaches that will be most effective to
following sequence of activities:
train employees who require training. Include
1. Conduct an organizational analysis to investigate specialists in various media and methods to assist
the performance gap and determine whether in developing training material.
training is a possible solution (when the cause of 5. Develop and fine-tune the program. Pilot-test it
the problem is a lack of knowledge or skills). and revise as needed.
2. If training is a possible solution, conduct a task 6. Deliver the program to its intended audience.
analysis in order to determine how the job or
jobs in question should be performed and the 7. Monitor and evaluate the program and its
things that a skilled employee must know and be results on an ongoing basis. The program is
able to do. considered a success if the original ­performance
gap is closed or reduced and if ­correcting
3. Conduct a person analysis to determine how
the problem costs less than the cost of not
employees currently perform the job compared
­correcting it.

Sources: J. Gordon & R. Zemke, “The attack on ISD.” Training, April, 2000, Pp. 42–53; R. Zemke & A. Rossett, “A hard look at ISD,”
Training, Feb. 2002, Pp. 26–34.

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24 Managing Performance through Training and Development

Summary and Road Map

This chapter introduced you to the training and development process and
emphasized the important role that training and development plays in
organizations. The benefits of training and development for organizations,
employees, and society were described as well as training investments made
by organizations in Canada. We also described how training and development
is embedded within the environmental and organizational context and is part
of the human resources system. It was also noted that for training to be most
effective it should be aligned with the organization’s business strategy and
with other human resource practices, and part of a high-performance work
system (HPWS). Finally, we described the instructional systems design (ISD)
model of training and development that sets the stage for the remainder of
the textbook.
In the next two chapters, we focus on learning—which is, after all, what
training and development is all about. In Chapter 2 you will learn about orga-
nizational learning and learning in organizations. In Chapter 3 you will learn
about individual learning and motivation. These two chapters are the foun-
dation for the remainder of the text and set the stage for the chapters that
follow.
Chapters 4 through 12 focus on the steps of the ISD model. Chapter 4 deals
with the needs analysis process. Chapters 5 through 10 focus on the design
and delivery of training and development programs. This includes chapters
on how to design training programs (Chapter 5), off-the-job training methods
(Chapter 6), on-the-job training methods (Chapter 7), and technology-based
training methods (Chapter 7). Chapter 9 focuses on how to deliver training pro-
grams, and in Chapter 10 you will learn how to design training programs so that
employees apply what they learn in training on-the-job or what is known as the
transfer of training. Chapters 11 and 12 focus on the final stage of the ISD model,
training evaluation. The focus of Chapter 11 is evaluation criteria and evaluation
design and the focus of Chapter 12 is how to determine the costs and benefits
of training programs.
In Chapter 13 you will learn about different types of training programs, and
in Chapter 14 you will learn about management training and development. The
text concludes with Chapter 15, which provides an overview of training trends
and the evolution of learning, training, and development.

Key Terms
development p. 7 performance management p. 5
high-performance work system strategic human resource management
   (HPWS) p. 20    (SHRM) p. 19
human resource development p. 7 strategic training and development
instructional systems design (ISD)    (ST&D) p. 19
   model p. 21 training p. 6
organizational culture p. 20 training bond p. 16

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 Chapter 1: The Training and Development Process 25

Web Links
Bayshore Home Health: [Link]
BMO Financial Group: [Link]
Delta Hotels and Resorts: [Link]
EllisDon: [Link]
Providence Health Care: [Link]
TD Bank: [Link]

Required Professional Capabilities (RPCs)

The following RPCs are relevant to material covered in this chapter. The RPC
number represents the CCHRA number assigned to the RPC as presented on
the CCHRA website. All of the RPCs can be found in the Body of Knowledge at
[Link]
RPC 144: Aligns OLDT with business objectives and needs.
144.01: Strategic HR Management
144.02: The organization’s strategic business plan
RPC 155: Ensures performance management information is an integral compo-
nent of employee development.
155.01: Principles and techniques of effective performance management systems,
including assessment, development and ­performance improvement

Discussion Questions
1. According to the Conference Board of Canada, the investments made by
Canadian organizations in training and development have remained rela-
tively constant over the last decade and appear to have reached a plateau
in terms of the amount organizations are willing to invest in training and
development. Comment on the implications of this for organizations,
employees, and the Canadian economy. Should governments get involved
and enact laws that require organizations to invest a certain percentage of
their payroll in training and development, as they have in Quebec?
2. Studies comparing the competitive performance of Canadian corporations
indicate that among the countries in the G8 (Canada, the United States,
Japan, Germany, France, Italy, Russia, and the United Kingdom), Canada
ranks very low. Do you think that training and development in Canada has
anything to do with this? If so, what should governments and businesses do?

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3. Discuss some of the reasons why organizations often fail to fully implement
the instructional systems design (ISD) model of training and development.
Why do you think the ISD model has come under attack in recent years and
been seriously challenged and criticized?
4. Refer to the chapter-opening vignette on TD’s Robbery Prevention
and Awareness training program and discuss the extent to which the
instructional systems design (ISD) model was used. In other words,
describe the company’s approach to the Robbery Prevention and
Awareness training program in terms of each stage of the ISD model.
5. Research on training and organizational effectiveness has found that
training is positively related to human resource and performance out-
comes but to a much lesser extent to financial outcomes. Explain why and
how training is related to these outcomes. What are the implications of
these findings for organizations? Why is training less strongly related to
financial outcomes?
6. Why do some organizations view training, learning, and development
as an expense (or an investment)? What are the implications of this?
What can be done to change the perception that training is an expense
so that organizations view training and development as an investment?
What are the implications of changing perceptions for employees,
organizations, and society?
7. Discuss some of the reasons why Canadian organizations have not
increased their investments in training and development over the last
decade. Do you think they should increase their investments in training and
development? Explain your answer.
8. Should organizations require employees to sign a training bond in which
they agree to pay back the organization the cost of the training they
received if they leave the organization? Explain your answer. What would
be your response if your organization or an organization that you wanted
to work in required you to sign a training bond?

The Great Training Debate

1. Debate the following: Training and development is the single most
important factor for the competitiveness and success of an organization.
2. Debate the following: All provinces should enact training legislation similar
to the training law in Quebec.
3. Debate the following: Training is an operating cost and should be limited to
only what is required by law and absolutely necessary.
4. Debate the following: Employees who receive training from their organiza-
tion should be required to sign a training bond that requires them to pay
the cost of their training if they leave the organization after a specified
period of time following training.

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 Chapter 1: The Training and Development Process 27

Exercises
In-Class
1. Review the training and development facts in Table 1.1. Benchmark your
experiences in a current or previous organization against the statistics
in the table. Based on the statistics in the table, you might consider
things such as: How does your organization compare to the Canadian
averages in areas such as the amount of training hours employees
receive a year and the amount spent per employee on training? Does
your organization fare better or worse than the average Canadian
organization? What do the results tell you about your organization?
What are the implications of your findings for your learning and job
performance and for your organization?
2. Consider how training and development is influenced by, and in turn can
influence, other human resource functions. In particular, give an example of
how training and development can influence and is influenced by activities
within each of the following human resource areas: recruitment; selection;
HR planning; performance appraisals; compensation; and health and safety.
3. Using the ISD model of training and development, examine the class
your instructor has delivered to you today. In other words, what did your
instructor have to do in terms of a needs analysis? How did he or she
design and deliver the class? How was the class evaluated or how should it
be evaluated?
4. Assume you are a director of training and development in a small organiza-
tion. In order to reduce expenses, the company president has decided to
cut the training budget in half and reduce the amount of training provided
to employees. The president has asked to meet with you to discuss these
plans. Your job is to prepare a short presentation to persuade the president
to change his or her mind. What will you say and what can you do to
convince the president of the importance of and need for more, not less,
training and development?
5. Recall the last time you attended an organization-sponsored training
program. Describe the objectives and content of the training program and
whether or not you think the program was strategic. In other words, was
it an example of strategic training? Be specific in terms of why you think
it was or was not a good example of strategic training. What would have
made it more strategic?
6. Recall the last time you attended an organization-sponsored training
program. Describe the objectives and content of the training program
and whether or not you think the ISD model was used to develop the
program. Be specific in terms of each stage of the model and the extent to
which it was used in the development of the program. How effective was
the training program in terms of your learning and in achieving the
program’s objectives? Based on your analysis, what could have been done
to more fully make use of the ISD model, and what effect might this have
had on the effectiveness of the program?

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28 Managing Performance through Training and Development

In-the-Field
1. Contact the human resource department of your own or another organiza-
tion to discuss the organization’s training programs. Try to learn about the
extent to which the human resource department follows the ISD model of
training and development. Find out about each stage of the model and the
extent to which it is adhered to in the development of training programs.
What aspects of the model are adequately carried out and which ones are
not? If some of the stages are not adequately conducted, find out why this
is the case and why the human resource department does or does not
­rigorously adhere to the ISD model. Based on the responses, what advice
would you give the human resource department about its training and
development programs?
2. A number of associations and government departments provide useful
information and services related to learning and training and development.
To learn more about some of these associations, visit the following websites:
[Link] (Canadian Society for Training and Development)
[Link] (American Society for Training & Development)
[Link]/ccl (Canadian Council on Learning)
[Link] (Human Resources and Skills Development Canada)
Write a brief report in which you describe the association and the
information that can be obtained from each site about learning, education,
and training and development.
3. To learn more about the benefits of training for Canadian organizations,
go to Industry Canada at [Link]/
webarchives/20060226114621/[Link]
internet/[Link]/en/h_sl00003e.html.
Answer the following questions:
a. Why is training important?
b. How is the workforce changing?
c. What are companies doing to train employees?
d. What are leading-edge learning organizations doing?

Case Incident
Canadian American Transportation Systems
Canadian American Transportation Systems began running a new high-speed
ferry between Toronto and New York State in 2004. The marine industry is
highly regulated and most of the workers have no experience so a great deal of
training was needed to meet the rigorous standards set by the U.S. Coast Guard
and Transport Canada.
There are two mandatory levels of training. One is called SOLAS (safety of
life at sea), which involves a very basic familiarization of the vessel, basic life
saving procedures, and medical emergencies. There is also a more advanced

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 Chapter 1: The Training and Development Process 29

­ rogram of survival training called STCW (seafarers’ training certification and

p
watch keeping). Employees were taken to Olympic-sized pools where they had to
jump into the water, get people into safety rafts, and learn how to use equipment
in cold water conditions.

Questions
1. To what extent has the instructional system design (ISD) model of training
and development been used? Discuss how the ISD model is relevant for the
training of the new staff and how it can be applied. What are some of the
implications of not using the ISD model?
2. Discuss the benefits of the training described in the case for the organiza-
tion, employees, and society.
Source: Claude Garcia, “CEOs Talk: Training & Development,” Canadian HR Reporter, May 17, 2004, P. 7.
Reprinted by permission of Canadian HR Reporter.

Case Study Flotation Ltd.

“Great course, Sam!” said the trainees as they walked out the door and headed
for the parking lot. Just like all the others. Sam Harris, a veteran trainer with
Flotation Ltd., a manufacturer of life jackets and other flotation devices, smiled
as he gathered his notes together.
He had just finished two hours of wisecracking and slightly off-colour
­storytelling as he worked his way through the third session of a human rela-
tions course for supervisors. “Keep ’em happy” was Sam’s motto. Give the
troops what they want, keep your enrolments up, and no one will complain.
Sam was good at it, too! For 20 years, he had earned an easy living, working
the politics, producing good numbers (of trainees) for the top brass to brag
about (“We give each employee up to 26 hours of training every year!”), and
generally promoting his small training group as a beehive of activity.
Everybody knew Sam and everybody liked him. His courses were fun. He
had no trouble convincing managers to send their people. He put out a little
catalogue with his course list every year in January. He hadn’t had a cancel-
lation in more than 10 years. Some managers said that training was the best
reward they had. Now, only three years from retirement, Sam intended to coast
comfortably into pension-land. All his favourite courses had long been pre-
pared. All he had to do was make adjustments here and there and create some
trendy new titles.
But times were changing. The company president was thinking differently.
“I need somebody to take a close look at our training function,” he said. Sitting
in the president’s office, Jenny Stoppard, the newly hired Vice President of
Human Resources, wondered what he meant. Flotation Ltd. had a reputation
as a company with a well-trained workforce.
“We need to increase our productivity per person by 50 percent over the
next three years,” the president continued. “And you are going to spearhead
that effort. We spend a lot on training and we cycle people through a lot of

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courses. But I’m not satisfied with the bottom line. I know that while Dad was
president he swore by Sam and said he was the greatest. I don’t know anymore.
Maybe a whole new approach is needed. Anyway, I want you to take a close
look at Sam’s operation.”
Later in the day, the president called Sam into his office. “Sam, I want
you to meet Jenny Stoppard. I’ve just hired her as Vice President of Human
Resources. She’s your new boss. I think the next three years are going to be
very exciting around here, and Jenny is going to be a key player in the drive to
increase our competitiveness. I want you to do everything in your power to
cooperate with her.”

Questions
1. Comment on Sam’s approach to training. Would you want him working
for your company? What are the benefits of his training programs to
employees and the organization?
2. To what extent is training and development at Flotation Ltd. strategic?
What would make it more strategic?
3. To what extent does Sam use the instructional systems design (ISD)
model of training and development? If he were to more fully use the ISD
model, what should he do? Comment on each step of the ISD model.
4. How does Sam evaluate his training programs? Compare Sam’s evalua-
tion to the president’s objectives. If Sam were to evaluate training based
on the president’s objectives, what would he have to do? What do you
think the results might be?
5. The president has asked Jenny to “take a close look at Sam’s operation.”
What should she do, and what should she report back to the president?

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