Training Influences: Globalization, Economic Conditions, and Demographics

Forces That Influence Training

Globalization Global companies compete to attract and retain talented employees. Managers need specialized training to develop the cultural competence required to work with expatriates and immigrants from other countries. Expatriates and immigrants also need cross-cultural training.

When the unemployment rate is low, finding skilled employees and retaining high- performers can be difficult. Economic Conditions Regardless of economic conditions, training can positively contribute to a company s performance by equipping employees with the KSAOs needed for current and future demands.

Intangible assets can be acquired through T&D. Human capital is the sum of employees KSAOs, experiences, inventiveness, and enthusiasm. Intellectual capital is the codified knowledge that exists in a company. Social capital refers to relationships in a company. Customer capital refers to the value of relationships with entities outside a company. Intangible Assets

The U.S. workforce is becoming older and more culturally diverse, which creates obstacles to: Providing a fair workplace, Accommodating the needs of different groups, and Managing non-traditional career development. Changing Demographics and Diversity

To effectively manage a diverse workforce, managers and employees must be trained to: Communicate with people of different ages, ethnicities, educational backgrounds, physical abilities, and other individual differences, Provide constructive feedback that is free of bias, and Create a work environment that supports all employees. Changing Demographics and Diversity

Customer Service and Quality Standards Increased competition and access to information has increased customers expectations. Total Quality Management (TQM) is a companywide effort to continuously improve the ways people,machines, and systems accomplish work. The ISO 9000 quality standards address what a company needs to do to meet regulatory and quality requirements and improve customer satisfaction. Six Sigma is a data-driven approach to improving the quality of output by removing errors and minimizing variability in business processes. Lean thinking is a way to do more with less effort, equipment, space, and time.

Learning technologies are becoming more popular and less expensive. Advances in technology enable training to be more realistic, to provide feedback, and to occur when and where employees want. New Technology Despite the benefits of incorporating social media in T&D systems, some companies fear it could reduce productivity and increase interpersonal conflicts.

Use of Non-Traditional Employment More companies are participating in the gig economy and employing non-traditional employees. Training should be specific, on demand, delivered in small chunks, and specifically focused on their job. Independent Contractors On-Call Workers Freelancers Temporary Workers Contract Workers

Company size Roles and responsibilities Leadership support Organizational Attributes that Affect T&D Employee participation Business units and conditions Other HRM practices Unions