DRUCKER, PETER: EMPLOYING THE WHOLE MAN (A SUMMARY)

 

Drucker, Peter

1982"Employing the whole man", The Practice of Management. Harper & Row. New York (pp. 262-272)

 

Peter Drucker makes the case that a company cannot just hire "a hand"; an entire human be-ing always comes with that hand. This means that the firm also hires the values, attitudes, and other personal attributes the worker brings to the workplace. According to Drucker:

The human resource... is, of all resources... the most productive, the most versatile, the most resourceful.

...one cannot "hire a hand"; its owner always comes with it.

In exploring the complexity of the management process, Drucker makes some significant comments about workers as humans, as opposed to inert resources.

...we are dealing with the worker as a human resource

[how we view the properties of this resource depends on]... whether we put the stress on the word "resource" or on the word "human"

 

The management process requires that a number of questions be asked about the relation-ship between worker and enterprise.

Q1:what demands does the enterprise (as the organ of society for getting work done) make on the worker?

Q2:what demands does the worker (as a human, an individual, and as a citizen) make on the enterprise?

There is, of course, also an economic dimension to management -- the dichotomy between the firm's need for profits and the workers' needs for wages:

a) the enterprise is the wealth-producing organ of society

b) the enterprise is the source of the worker's livelihood

...we must reconcile... [the] conflict between wage as cost and wage as income... and... the problem of the worker's relation to the enter-prise's fundamental requirement of profitability

WORKERS AS RESOURCES

First, Drucker deals with the issue of workers as resources. He indicates that an engineer-ing approach...

...looks at the worker as a resource, comparable to all other resources... to utilize him in the same way in which we utilize copper or... water power

Conversely, a human approach to the human resource issue would take a different and, ac-cording to Drucker, more appropriate perspective.

...the human being has one set of qualities possessed by no other resource: it has the ability to co-ordinate, to integrate, to judge, and to imagine

[we must focus]... on man as a moral and a social creature

As a resource, man can be "utilized". A person, however, can only utilize himself. This is the great and ultimate distinction.

...it is workers' motivation that controls workers' output.

The human being also has control over how well he works... in all work of a clerical, skilled, technical, professional or managerial nature, this control is practically absolute

THE DEMANDS OF THE ENTERPRISE ON THE WORKER

Since it has hired the worker, the enterprise makes some demands of that worker. It has been assumed that an enterprise has the right to expect "a fair day's labor for a fair day's pay". However, Drucker questions whether one can actually determine what is "fair". Fur-thermore, he feels that an enterprise ought to expect more from its workers.

The enterprise... must demand something much bigger than a fair day's labor. It must de-mand over and above fairness, willing dedication... It must aim at building aggressive es-prit de corps.

The enterprise must expect of the worker not the passive acceptance of a physical chore, but the active assumption of responsibility for the enterprise's results.

Beyond the demand that the worker "buy into" the mission of the organization, Drucker maintains that the enterprise has the right to expect the worker to accept change.

Change is not only an intellectual process but a psychological one... there are conditions for man's readiness to change.

1. The change must appear rational

2. [The change]... must appear an improvement

3. [The change]... must not be so rapid or so great as to obliterate the psychological land-marks which make a man feel at home

a) his understanding of his work

b) his relations to fellow workers

c) his concepts of skill, prestige, and social standing

Change will meet with resistance unless it clearly and visibly strengthens man's psycho-logical security.

THE DEMANDS OF THE WORKER ON THE ENTERPRISE

Just as the enterprise makes demands of the worker, so too does the worker make demands of the enterprise. In making these demands, the worker acts as more than just an economic being.

The worker in making his demands on the enterprise is a whole man not an economic sub-section thereof.

He demands, over and above economic returns, returns as an individual, a person, a citi-zen.

He demands the fulfillment of status and function... that his work be meaningful and that it be serious

THE ECONOMIC DIMENSION

 

...there is a big group of [management] problems that have their origin in the economic sphere.

The enterprise lives in two economic systems, an external and an internal one.

The total amount available for the internal economy (...above all for wages to the em-ployee) is determined by what the enterprise receives for its product in the external econ-omy.

Internally... the enterprise is not a market economy. It is a "redistributive" one... [in which wages are distributed] according to a predetermined formula.

While the effort of management must be directed toward receiving more...

the attention of the worker... is directed toward receiving a larger share....

Outside the enterprise the considerations are economic. Inside the enterprise they (consid-erations) are based on power balance and power relationships.

In the economic dimension, the is a basic divergence.

The enterprise needs flexibility of the wage burden.

The individual values, above all, a steady, stable and predictable in-come...

The result of this divergence tends to be a twofold meaning of profit:

To the enterprise profit is a necessity of survival.

To the worker profit is somebody else's income.

 

What is the importance of training and development to the organization?

Answer:

Importance Of Training and Development• Optimum Utilization of Human Resources - Training and Development helps in optimizing the uti-lization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals. 

• Development of Human Resources - Training and Development helps to provide an opportunity and broad structure for the development of human resources' technical and behavioral skills in an organization. It also helps the employees in attaining personal growth. 

• Development of skills of employees - Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of

human intellect and an overall personality of the employees. 

• Productivity - Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal. 

• Team spirit - Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees. 

• Organization Culture - Training and Development helps to develop and improve the organiza-tional health culture and effectiveness. It helps in creating the learning culture within the organiza-tion. 

• Organization Climate - Training and Development helps building the positive perception and feel-ing about the organization. The employees get these feelings from leaders, subordinates, and peers. 

• Quality - Training and Development helps in improving upon the quality of work and work-life. 

• Healthy work-environment - Training and Development helps in creating the healthy working en-

vironment. It helps to build good employee, relationship so that individual goals aligns with organi-zational goal. 

• Health and Safety - Training and Development helps in improving the health and safety of the or-ganization thus preventing obsolescence. 

• Morale - Training and Development helps in improving the morale of the work force. 

• Image - Training and Development helps in creating a better corporate image. 

• Profitability - Training and Development leads to improved profitability and more positive atti-tudes towards profit orientation. 

• Training and Development aids in organizational development i.e. Organization gets more effec-tive decision making and problem solving. It helps in understanding and carrying out organisa-tional policies 

• Training and Development helps in developing leadership skills, motivation, loyalty, better atti-tudes, and other aspects that successful workers and managers usually display. 

Training and Development demonstrates a commitment to keeping employees on the cutting edge of knowledge and practice.

Read more: http://wiki.answers.com/Q/What_is_the_importance_of_training_and_development_to_the_organization#ixzz3qHqpDyMY

training and learning development

training, coaching, mentoring, training and learning design - developing people

Conventional 'training' is required to cover essential work-related skills, techniques and knowledge, and much of this section deals with taking a positive progressive approach to this sort of traditional 'training'.

Importantly however, the most effective way to develop people is quite different from conventional skills training, which let's face it many em-ployees regard quite negatively. They'll do it of course, but they won't enjoy it much because it's about work, not about themselves as people. The most effective way to develop people is instead to enable learning and personal development, with all that this implies.

So, as soon as you've covered the basic work-related skills training that is much described in this section - focus on enabling learning and de-velopment for people as individuals - which extends the range of de-velopment way outside traditional work skills and knowledge, and cre-

ates far more exciting, liberating, motivational opportunities - for people and for employers.

Rightly organisations are facing great pressure to change these days - to facilitate and encourage whole-person development and fulfilment - be-yond traditional training.

Employee Training and Development

Employee Training and Development is essential to the ongoing success of every organiza-tion. Although technology and the internet have enabled global collaboration and competi-tion, people are the organization’s competitive advantage.  Employee training and develop-ment enables employees to develop skills and competencies necessary to enhance bottom-line results for their organization. We work with your leadership team to identify training needs, and to design, develop, imple-ment, and evaluate employee training and development programs to meet your company’s strategic objectives. We have experience in developing end-to-end employee training and development programs for marketing, sales, and technical teams in Fortune 500 companies both domestically and internationally. Our experience and insight can shorten your develop-ment cycle and free you to focus on other areas. Employee Training and Development is a key ingredient in performance improvement. How-ever, the first step in designing an employee training and development program is to identify the training needs. The training needs are based on what is needed to achieve the organiza-tion’s strategic objectives.  Key steps for performance improvement include

1.       Assess and define performance improvement issues and gaps2.       Gain management commitment for performance improvement3.       Develop a business plan to manage performance improvement4.       Establish best practices for work processes and performance standards5.       Provide employee training and development to develop required skills6.       Establish new practices that support improved performance7.       Measure and monitor results and provide coaching where needed

What are your organization’s critical skills? Essential skills for many organizations include effective time management, effective communication, collaboration, project management, customer service, teamwork, and specialized technology skills to use SAP, Siebel, PeopleSoft, and other enterprise applications. Lost productivity due to training gaps is ex-pensive. A targeted training and development program focused on strategic skills can signifi-cantly enhance profits quickly. 

FACTA UNIVERSITATIS Series: Economics and Organization Vol. 4, No

2, 2007, pp. 209 - 216EMPLOYEE TRAINING AND DEVELOPMENT AND THE LEARNING ORGANIZATION UDC 331.363 Jelena VemićFaculty for Service Business, kamencic@verat.net Abstract. The global competition and swiftness of changes emphasize the importance of human capital within organizations, as well as the swiftness and ways of knowledge gaining of that capital. In the economy where uncertainty is the only certainty, knowledge is becoming a reliable source of sustained competitive advantage. Knowledge is becoming basic capital and the trigger of development. Previously built on foundations of possessing specific resources and low costs, present day competition is based on knowledge possessing and efficient knowledge management. Modern organizations, therefore use their resources (money, time, energy, information, etc.) for permanent training and advancement of their employees. Organizations which are constantly creating new knowlegde, extending it through the entire organization and implementing it quickly inside the new technologies, develop good products and excellent services. These activities determine the company as a learning organization with constant innovation being its sole business. These are organizations which realize that learning and new knowledge are becoming the key of success, and that education is crucial for abundance. Key Words: human resource management, knowledge management, learning organization, education, development, knowledge workers 1. INTRODUCTIONChanges in technology, especially information technology, generate knowledge spreading up at tremendous speed, as well as its quick obsolence. In the period between 1900 and 1950, the amount of human knowledge doubled, and since then it has doubled every 5 to 8 years. Knowledge is becoming obsolete so quickly that all of us need do double our knowledge every 2 to 3 years in order to keep up with the changes. [6] On the other hand, the increasing complexity, turbulency and uncertainty of the environment requires different and greater knowledge. Modern business requires more and more knowledge and skills that are still inadequatly present in the formal school education, i.e. the gap between business reqiurements and the knowledge acquired at school is growing. Received September 22, 2007 210 J. VEMIĆThe period of mass producing is over and the customers are very selective. Increased consumer demands require new solutions and knowledge. Due to increasing competition, the organization is required to constantly revise its product and service mix, managerial methods, and to increase productivity. Modern conditions of dynamic competition, sophisticated information technology, knowledge economy, market globalization, has changed the relation to importance of human resources in organization. These conditions actualize the human capital as the strategic resource of every organization. Differences between the organizations exist exactly due to the differences between human capital, i.e. the organizations human resources, ways of their management and development. In a more and more global, complex and turbulent environment, knowledge is the only reliable source of competitive advantage. Traditional factors of manufacturing as the soil, labor and capital did not disappear, but their significance is not primary anymore. Knowledge is viewed as the key of realization of a competitive advantage. And therefore the question of where the corporative knowledge is located, how to release it and develop to

achieve organizational goals has become very important. Since the organizational knowledge is largely located inside the human mind, i.e. the head of employees, as carriers of knowledge and activities, human resources are becoming the key factor of business success. Organizational development is always conditioned by human knowledge and skills. That is why, contemporary organizations pay more and more attention to the development of their emplozees. Thus, employee education and training are becoming an optimal answer to complex business challenges, and the management of human resources is taking central role in modern management. Through the process of employee training and development, the management of human resources provides constant knowledge innovation, creates conditions for mutual knowledge and experience exchange and proactive behaviour, in this way contributing to competitive advantage and satisfaction of all participants in business procedures. As a consequence of these procedures a learning organization has formed. The aim of this paper is to point to the fact that education and development of human potential are the basic factor for creation of basis for transformation from traditional to a learning company. Learning organization is organization that promotes learning of all of its members and it transforms permanently. Individuals and societies that do not have enough knowledge are in inferior position, compared to societies and organisations that have it and even permanently acquire new knowledge. That is the reason why we say that success is not among the educated but among those that are learning permanently, and everything changes except knowledge acquirement, which is constant. The fore mentioned statements in the best way show the direction in which learning organizations move. 2. EMPLOYEE TRAINING AND DEVELOPMENTUnderstanding the phenomenon of employee training and development requires understanding of all the changes that take place as a result of learning. As the generator of new knowledge, employee training and development is placed within a broader strategic context of human resources management, i.e. global organizational management, as a planned staff education and development, both individual and group, with the goal to benefit both the organization and employees. To preserve its obtained positions and Employee Training and Development and the Learning Organization 211 increase competitive advantage, the organization needs to be able to create new knowledge, and not only to rely solely on utilization of the existing. [10] Thus, the continous employee training and delopment has a singnificant role in the development of individual and organizational performance. The strategic procedure of employee training and development needs to encourage creativity, ensure inventiveness and shape the entire organizational knowledge that provides the organization with uniqueness and differentiates it from the others. Education is no longer the duty and privilege of those in higher positions and skilled labour, but it is becoming the duty and need of everyone. The larger the organizations, the more funds they spend on education and provide their employees with greater and diverse possibilities of education and development. Understanding the tremendous significance of education for the modern organization and confident that it represents a good and remunirative investment, present day organizations set aside more and more resources for this activity. Most of the organizations invest 3 to 5% of their revenue into adult education. It is estimated that the organizations that desire to keep the pace with changes need to provide their employees with 2% of total annual fund of working hours for training and education. [9] Thus, it is necessary to accept the model of permanent,

continuous learning. That truth has been known for more than two centuries. Denis Diderot, a French philosopher and literate of the Age of Enlightment, wrote the following: "Education shouldn't be finished when an individual leaves school, it should encompass all the ages of life...to provide people in every moment of their life with a possibility to maintain their knowledge or to obtain new knowledge". [4] The only way for present day organizations to survive is the imperative to innovate or perish. Since this depends on the knowledge the organization possesses, this imperative could be read as: learn faster than competition. The logical sequence is: knowledge creation – innovation – competitive advantage. If knowledge is good, is it not true that the more knowlegde we have, the better we are? Many organizations which consider knowledge as a good thing are trapped into the pitfall of gathering as much knowledge as possible. Knowledge that is not necessary is exatly what it is: unnecessary. And the efforts to obtain it are wasted efforts. The only important knowldege is the knowledge with strategic importance to the company, knowledge that helps to increase the value of the company, knowledge with significance to the strategy of the company. It is not about knowledge for the sake of knowledge, but rather knowledge according to the needs, applicable knowledge, knowledge to create innovation and competitive advantage. [8] Obtaining knowledge, learning, education, all could have a real effect on the quality of labour only if they are harmonized with the needs of a particular organization, its goals and the goals of its employees. The further choice of educational contents and educational methods, and the efficiency of educational effectiveness control depend on clearly defined educational goals and needs, answers to the questions of which knowldege is necessary to realize the strategy and the survival of the organization in general, which employees need to possess this knowledge and will this knowledge solve certain problems. Employee training and development does not imply only obtaining new knowledge, abilities and skills, but also the possibility to promote entrepreneurship, introduce employees to changes, encourage the changes of their attitude, introduce the employees to important business decisions and involve them actively in the process of decision making. 212 J. VEMIĆ[3] To precisely define expectations and attract skilled workforce, more and more employment advertizings offer a certain number of annual hours or days for education. The most wanted resources are the people with particular knowledge, skills and abilities. Managers must learn to manage them, and the organizations to employ and retain them. Knowledge based organizations must preserve their competitive advantage by retaining skilled workforce, workers of knowledge, strengthening their motivation and improving the reward and compensation systems according to the workers' performances. Within the context of learning organization, it is not sufficient for the worker only to add value to the organization based on his knowledge, but he also has to receive knowledge. He gives as much knowledge as he receives. For the present day employees the wage by itself is not a sufficient incentive, but they also need investment into themselves in a sense of investing in their knowledge. Empolyees no longer work for money alone, nor can they be influenced by traditional attractive financial packages. 3. CONCEPT OF A LEARNING ORGANIZATIONEvery individual should appreciate lifelong learning, and every successful organization has to become a permanently learning organization. Many successful organizations describe themselves as learning organization or one of their strategic goals is to become such an organization. Companies such as Coca-Cola, Motorola, General Electrics and Cisco have assigned vice presidents for knowledge, learning or intellectual capital whose task is to create

knowledge management systems that enable them to quickly adopt development tendencies, influencing in that way the customers, competitors, distributors and suppliers. The organization is not only the user of knowledge, but also its creator. According to the views of Peter Senge described in the book named "The Fifth Discipline", the learning organization implies free flow of knowledge, i.e. lifting of all barriers on developing knowledge and new ideas at the very beginning. [7] In the future it will not be possible to "unthread things from above" and for all the others to follow the "big brother's" instructions anymore. The top organizations of the future will be distinguished by their knowledge about how to encourage engagement and develop the learning potential on each organizational level. Peter Senge's model of a learning organization is very interesting since it recognizes the organization as a whole, i.e., in his organization, through their functions and sectors within the organization, all the employees influence the course of business procedures, and the knowledge creation, consequently the creation of new values both for the organization and its customers. With this definition, Senge has made significant qualitative progress compared to the classical organization, since he emphasized the necessity of ability development through the process of learning. Besides Senge, Chris Argyris was a great popularizer of a learning organization as well. In his book "Teaching smart people how to learn", he says: "Any company that aspires to succeed in the tougher business environment must first resolve a basic dilemma: success in the marketplace increasingly depends on learning, yet most people don't know how to learn. What's more, those members of the organization that many assume to be the best at learning are, in fact, not very good at it. I am talking about the well-educated, highpowered, highly committed professionals who take up key leadership positions in the modern corporation." [1] Employee Training and Development and the Learning Organization 213 Organizations learn only through the learning individuals. Individual learning does not guarantee organizational learning. But without it there is no organizational learning as well. The ablity to learn faster than the competitors may be the only sustainable competitive advantage. Thus, the learning organization is the organization that learns and encourages people to learn in the organization. It motivates information exchange between employees and creates staff with different knowledge. Chris Argiris explains this: "On the other hand, there is a problem of existence of individuals within the organization who know how to learn, but that doesn't create automatically conditions for the organization to learn as well. This is due to the indisputable view that knowledge is still the only private property the man owns. This means that individual learning, and even learning of all the employees, doesn't imply the existence of a learning organization. To have a learning organization, it is necessary to know how to transfer individual into organizational knowledge, i.e. into organizational learning." [1] The starting point of knowledge management concept is in the fact that power does not come from knowledge, but from the exchange of knowledge. It starts from the synergic effect. By exchanging knowledge, combining individual knowledge, we get much more qualitative knowledge than the individual knowledge. Obtaining and sharing knowledge is the core of the learning organization. The reasons to become a learning organization are the following: people are developing (greater motivation, flexibility of employees, people are more creative, improved social interaction), better working teams and groups (knowledge sharing, mutual dependence), benefiting organizations (greater work productivity, more qualitative products/services/ procedures, competitive advantage, profit). [4]

4. APPROACH TO TRAINING AND DEVELOPMENT WITHIN OUR ORGANIZATIONS AND NEED FOR TRANSFORMATIONUnfortunately, the procedures of employee training and development within our organizations are undeveloped. They are mainly performed occasionally, and not connected with organizational strategy, nor do they have some strategic significance. They are mostly enforced when such business problems occur or are perceived that are considered relievable or solvable by organizing a training, course or seminar for some of the employees. Employees view the training as an imposed obligation, rather than a way to maximize their potential and they do not realize that by improving their performances and innovation of their knowledge they may contribute to better business results of the organization they belong to. Unfortunately, top managers do not realize this as well. From their relationship with the employees it is plain to see that the employees are still treated as an expense, rather than an investment worthy of investing. In our organizations there is no culture of obtaining and sharing of knowledge. [11] Many of our managers are under the influence of prejudices such as: training is expensive, training is an expense burdening the current business, it is not rewarding, training is for the young, etc. Knowledge is expensive, but ignorance is even more expensive. Human possibilites to learn are unlimited, unless idviduals do not limit their abilities within their minds. Many studies have shown that investing in employee training and development has larger business effects than investing in equipment and other 214 J. VEMIĆmaterial resources. Our organizations must harmonize their approach to employee development with the changes. Employee training and development has to be connected with the organizational goals and strategy, they need to fulfill the new reqiurements of the environment. Employee training and development needs to become a managerial function. It is a managerial challenge to consider the employees of the organization from a strategic perspective (future orientedness) and constantly monitor and encourage the development of new skills and knowledge as the foundation of organizational development. This is not about assigning the employees to appropriate jobs, but rather about the constant dynamic of encouraging and discovering new possibilities. This is a new type of leadership, significantly different from the classical model of organizational management. The leaders are no longer expected to be all-knowing bosses and supervisors, but rather moderators and inspirators. Since people do not share the information which is the source of their power instictively, the leaders need to recognize, attract and release knowledge in the organization. One of the main challegnes of modern organizations therefore is how to manage the process of knowledge transfer. "The answer is that wisdom, just because it is the most important, doesn't need to be located inside a tall building where the chief executive and his main assistants hang their hats (and soon their heads as well – unless they join the revolution of the mind). [5] This pictoresque answer of Tom Peters refers to decentralization and substantivity of employees (turning every workplace into business), which implies a high degree of employee competence and orientation toward the participative style of management. The process of democratisations, transitions, opening towards the EU, privatisations and arrival of foreign companies and praxis contributed considerably to transformation of approach to employee training and development within our organizations, from the ad hoc processes that originate from the goals and strategies, to a modern approach where human resources and their knowledge are gaining more and more significance. 5. CONCLUSIONBusiness conducting and survival in the present day turbulent environment are relying on organizational knowledge in a sense of a giving timely and aproppriate answer to

challenges. The ability of individuals and organizations to obtain and master new knowledge has become the key comparative advantage. The concept of knowldege management and management of human resources, especially the function of employee training and development within the learning organization, are engaged with the basic resource of modern business, i.e. with knowledge and its utilization. Renewing knowledge is an imperative for the organization, and not an option. The rate of learning has to be greater than the rate of changes. Training and development of employees is a continuous procedure which is the only meaningful and logical approach in the condition of knowledge obsolescence, dynamic changes and increasing need for constant product and service innovations. Human resources represent intellectual capital which is the new source of organizational resources, and the organization could increase them only through training, development and motivation of employees. The prosperity of organizations becomes explicitly dependent on the intellectual capacity of their employees and their ability to change and adjust to the dynamic business environment. Employee Training and Development and the Learning Organization 215 The learning organization is the result of a strategic relationship with the employee training and development and the recognition of the fact that knowledge is the answer to the numerous challenges from the environment. Every organization is becoming an institution that learns and teaches. The successful learning organization is able to attract the most talented people, to involve them into all business procedures and to motivate them to generate and exchange knowledge, enabling them in turn to maintain and improve their individual professional skills. It could be concluded that an organization which fails to recognize in due time the emergence of knowledge economy and does not transform into an organization of knowledge, i.e. does not realize and accept the changes unfoding on a global level, gradually, but inevitably is headed to self-destruction. In that context, the introduction of employee training and develoment as a managerial function and business orientation represent a huge challenge for our organizations. The level of the learning organization directly determinates the competitive advantage, and lifelong learning and knowledge spreading are becoming the main managerial task and the task of all employees. Without it, it is difficult to implement the changes and adjust them to changes in the environment, to create innovations and guarantee the success of organizations, as well as the succes of the individuals within the organization. In that sense, organizations will be more like classrooms, managers like teachers, and employees like disciples.

ANRV364-PS60-17 ARI 27 October 2008 16:19Benefits of Training andDevelopment for Individuals

and Teams, Organizations,and SocietyHerman Aguinis1and Kurt Kraiger21The Business School, University of Colorado Denver, Denver, Colorado 80217-3364;email: Herman.Aguinis@ucdenver.edu2Department of Psychology, Colorado State University, Fort Collins, Colorado 80523-1876;email: Kurt.Kraiger@colostate.eduAnnu. Rev. Psychol. 2009. 60:451–74The Annual Review of Psychology is online atpsych.annualreviews.orgThis article’s doi:10.1146/annurev.psych.60.110707.163505Copyright c 2009 by Annual Reviews.All rights reserved0066-4308/09/0110-0451$20.00Key Wordstraining benefits, training design, training delivery, training evaluationAbstractThis article provides a review of the training and development literaturesince the year 2000. We review the literature focusing on the benefits oftraining and development for individuals and teams, organizations, andsociety. We adopt a multidisciplinary, multilevel, and global perspectiveto demonstrate that training and development activities in work organizations can produce important benefits for each of these stakeholders.We also review the literature on needs assessment and pretraining states,training design and delivery, training evaluation, and transfer of training to identify the conditions under which the benefits of training anddevelopment are maximized. Finally, we identify research gaps and offerdirections for future research.451Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19Training: thesystematic approach toaffecting individuals’knowledge, skills, andattitudes in order toimprove individual,team, andorganizationaleffectivenessDevelopment:systematic effortsaffecting individuals’

knowledge or skills forpurposes of personalgrowth or future jobsand/or rolesContentsINTRODUCTION . . . . . . . . . . . . . . . . . . 452Organization and Overview . . . . . . . . 453BENEFITS OF TRAINING FORINDIVIDUALS AND TEAMS . . . . 453Benefits Related to JobPerformance . . . . . . . . . . . . . . . . . . . . 453Other Benefits. . . . . . . . . . . . . . . . . . . . . 455BENEFITS OF TRAININGFOR ORGANIZATIONS . . . . . . . . . 457Benefits Related toOrganizational Performance . . . . . 457Other Benefits. . . . . . . . . . . . . . . . . . . . . 458BENEFITS OF TRAININGFOR SOCIETY . . . . . . . . . . . . . . . . . . . 459HOW TO MAXIMIZE THEBENEFITS OF TRAINING . . . . . . 460Needs Assessment andPretraining States. . . . . . . . . . . . . . . 461Training Design and TrainingDelivery . . . . . . . . . . . . . . . . . . . . . . . . 462Training Evaluation . . . . . . . . . . . . . . . . 463Transfer of Training. . . . . . . . . . . . . . . . 464CONCLUSIONS ANDSUGGESTIONS FORFUTURE RESEARCH. . . . . . . . . . . . 466Implications for Practice . . . . . . . . . . . 466Suggestions for Future Research . . . . 466INTRODUCTIONAs organizations strive to compete in theglobal economy, differentiation on the basisof the skills, knowledge, and motivation oftheir workforce takes on increasing importance. According to a recent industry reportby the American Society for Training and Development (ASTD), U.S. organizations alonespend more than $126 billion annually onemployee training and development (Paradise2007). “Training” refers to a systematic approach to learning and development to improveindividual, team, and organizational effectiveness (Goldstein & Ford 2002). Alternatively,development refers to activities leading to theacquisition of new knowledge or skills for purposes of personal growth. However, it is oftendifficult to ascertain whether a specific researchstudy addresses training, development, or both.In the remainder of this review, we use the term“training” to refer to both training and development efforts.The importance of and scholarly interest

in training in work organizations is reflectedby the regular publication of training reviewsin the Annual Review of Psychology since 1971(Campbell 1971, Goldstein 1980, Wexley 1984,Latham 1988, Tannenbaum & Yukl 1992, Salas& Cannon-Bowers 2001). The present reviewcovers the training literature since January2000. We provide a review that is comprehensive though not exhaustive. Also, in contrast topreviously published Annual Review of Psychology articles, we readily acknowledge at the outset that we take a point of view that trainingin work organizations produces clear benefitsfor individuals and teams, organizations, andsociety. We believe that training in work organizations is an area of applied psychologicalresearch that is particularly well suited for making a clear contribution to the enhancement ofhuman well-being and performance in organizational and work settings as well as in societyin general. Thus, in this review we first describethe benefits of training for various stakeholdersand then discuss how training can be designed,delivered, and evaluated so that these benefitsare maximized.We acknowledge three unique characteristics of the present review that also differentiateit from previousAnnual Review of Psychology articles on the same topic. First, because the training field has grown exponentially in the pastdecade, we cannot rely on the psychological literature to be the only or even main source ofknowledge that has been generated. In preparing to write this article, we reviewed about600 articles, books, and chapters publishedin psychology as well as in related fields including human resource management, instructional design, human resource development,human factors, and knowledge management.We believe this multidisciplinary approach isneeded given the increasing fragmentation of452 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19knowledge generated by researchers in varioustraining subfields. Second, although psychology research on training has been a topic traditionally studied at the individual level of analysisand more recently at the team level of analysis,this review also includes organization and society levels of analysis. The present article goesbeyond the traditional levels of analysis because,as noted by Kaufman & Guerra (2001), “wehave entered a new era in which both achieving useful results and proving that they addvalue to the organization and our shared society are required” (p. 319). Third, thanks in partto the availability of cheaper and faster waysto send and receive information using the Internet, human resource management interventions and training efforts in particular are takingplace at a global level (Cascio & Aguinis 2008).Thus, a review of the training literature cannot

limit itself to research conducted only in theUnited States. Accordingly, this review includesnumerous studies conducted outside of NorthAmerica. In short, we approached our literaturereview from a fundamentally necessary multidisciplinary, multilevel, and global perspective.Organization and OverviewThe present review is organized as follows. Inthe first section, we describe benefits of training activities. First, we focus on benefits for individuals and teams, separating these benefitsinto job performance and factors related to jobperformance (e.g., tacit skills, innovation, communication), and other benefits (e.g., empowerment, self-efficacy). Second, we describe benefits for organizations. We also separate thesebenefits into organizational performance, factors related to organizational performance (e.g.,effectiveness, profitability, sales), and otherbenefits (e.g., employee and customer satisfaction, improved organizational reputation).Third, we describe benefits for society. Overall,a review of this body of literature leads to theconclusion that training activities provide benefits for individuals, teams, and organizationsthat improve a nation’s human capital, which inturn contributes to a nation’s economic growth.Human capital: thecollective set ofperformance-relevantknowledge, skills, andattitudes within aworkforce (at anorganizational orsocietal level)Training evaluation:the systematicinvestigation ofwhether a trainingprogram resulted inknowledge, skills, oraffective changes inlearnersThe second section reviews research addressing how to maximize the benefits of training activities at the individual and team, organizational, and societal levels. First, we focuson the activities that take place before training is implemented—needs assessment and pretraining states. Then, we focus on training design and delivery, followed by a discussion oftraining evaluation. We review research regarding transfer of skills and knowledge acquired intraining to work settings. In the third and fi-nal section, we address conclusions, includingimplications for practice, and suggestions forfuture research.BENEFITS OF TRAINING FORINDIVIDUALS AND TEAMSThere is documented evidence that training activities have a positive impact on the performance of individuals and teams. Training activities can also be beneficial regarding other

outcomes at both the individual and team level(e.g., attitudes, motivation, and empowerment).We first review performance-related benefits.Benefits Related to Job PerformanceTraining-related changes should result in improved job performance and other positivechanges (e.g., acquisition of new skills; Hill& Lent 2006, Satterfield & Hughes 2007)that serve as antecedents of job performance(Kraiger 2002). Reassuringly, Arthur et al.(2003) conducted a meta-analysis of 1152 effect sizes from 165 sources and ascertained thatin comparison with no-training or pretrainingstates, training had an overall positive effect onjob-related behaviors or performance (mean effect size or d = 0.62). However, although differences in terms of effect sizes were not large,the effectiveness of training varied dependingon the training delivery method and the skillor task being trained. For example, the mosteffective training programs were those including both cognitive and interpersonal skills, followed by those including psychomotor skills ortasks. Next, we describe studies to exemplify,www.annualreviews.org • Benefits of Training and Development 453Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19as well as go beyond, the general findings reported by Arthur et al. (2003). We emphasizethat results from meta-analytic reviews shouldgenerally be given more weight than individual (i.e., primary-level) studies because they aremore reliable (Aguinis et al. 2008).Training effects on performance may besubtle (though measurable). In a qualitativestudy involving mechanics in Northern India,Barber (2004) found that on-the-job trainingled to greater innovation and tacit skills. Tacitskills are behaviors acquired through informallearning that are useful for effective performance. Regarding innovation, trained mechanics learned to build two Jeep bodies using onlya homemade hammer, chisel, and oxyacetylenewelder. Regarding tacit skills, Barber noted thatthe job of a mechanic requires “feel” to be successful. Specifically, trained mechanics developed an intuitive feel when removing dents—acomplex process particularly when the fender isbadly crumpled. As a result of informal training,one of the mechanics had a “good feeling of howto hit the metal at the exact spot so the work progresses in a systematic fashion” (Barber 2004,p. 134). This type of tacit skill was particularlyuseful in the Indian context because, althoughmost shops in developed nations would not evenattempt to repair a fender that was damaged sobadly, this type of repair is common practice inthe developing world (Barber 2004).

Benefits of training are also documented fortechnical skills. For example, Davis & Yi (2004)conducted two experiments with nearly 300participants using behavior-modeling trainingand were able to improve computer skills substantially. Although behavior-modeling training has a rich history of success (e.g., Decker &Nathan 1985, Robertson 1990), a unique aspectof this research was that training was found toaffect changes in worker skills through a changein trainees’ knowledge structures or mentalmodels (see also Marks et al. 2002 for an examination of mental models at the team level).Specifically, mentally rehearsing tasks allowedtrainees to increase declarative knowledge andtask performance, each measured 10 days after the training was completed. More recently,Taylor et al. (2005) conducted a meta-analysisincluding 117 behavior-modeling trainingstudies. They ascertained that the largest effects were for declarative and procedural knowledge (ds around 1.0 resulting from comparingtraining versus a no-training or pretest condition). Declarative knowledge is knowledgeabout “what” (e.g., facts, meaning of terms),whereas procedural knowledge is knowledgeabout “how” (i.e., how to perform skilled behavior) (see Aguinis 2009, Kraiger et al. 1993). Theoverall mean effect on changes in job behaviorwas d = 0.27. However, Taylor et al. (2005) reported substantial variance in the distributionof effect sizes, indicating the need to investigate moderators of the relationship betweenbehavior-modeling training and outcomes. Weaddress the issue of moderators below in theSuggestions for Future Research section.Training not only may affect declarativeknowledge or procedural knowledge, but alsomay enhance strategic knowledge, defined asknowing when to apply a specific knowledgeor skill (Kozlowski et al. 2001, Kraiger et al.1993). Smith et al. (1997) refer to this astraining for adaptive expertise (see also Ford& Schmidt 2000). In addition, training mayenable consistency in performance acrossconditions. For example, Driskell et al. (2001)conducted a study including 79 U.S. Navytechnical school trainees who performed acomputer-based task. Trainees participated in astress-exposure training session. This trainingexposes trainees to information regardingstressors (e.g., noise, time urgency), to thestressors, and how these stressors are likelyto affect performance. Results showed thattraining was beneficial in that trainees performed well under a novel stressor and whenperforming a novel task. Thus, stress traininghelps maintain performance consistency.

Performance consistency may also resultfrom enhancing trainees’ self-efficacy or selfmanagement skills. Frayne & Geringer (2000)conducted a field experiment in which theyadministered self-management training (lectures, group discussions, and case studies) to30 salespeople in the life insurance industry.454 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19Results showed that salespeople who participated in the training program demonstratedhigher self-efficacy, outcome expectancy (e.g.,“I will increase my sense of accomplishment”),and objective outcomes (e.g., number of newpolicies sold) as well as subjective job performance (i.e., sales managers’ ratings of eachsalesperson’s performance). Training-relatedperformance improvement was sustained overa 12-month period after training ended.There are also documented benefits of training for managers and leaders. Collins & Holton(2004) conducted a meta-analysis of the bene-fits of managerial leadership development programs including 83 studies published between1982 and 2001 (see also Cullen & Turnbull2005). They found that mean ds (comparingtraining with no training) ranged from 0.96to 1.37 for knowledge outcomes and from0.35 to 1.01 for expertise/behavioral outcomes.Knowledge was defined as principles, facts, attitudes, and skills measured using both subjective (e.g., self-reports) and objective (e.g., standardized tests) measures. Expertise/behavioraloutcomes were defined as changes in on-thejob behavior and were also assessed using bothsubjective (e.g., peer ratings) and objective (e.g.,behavioral) measures.A final illustration of training benefits related to performance is cross-cultural training,in which employees are trained to perform theirjobs in a different culture and/or adjust psychologically to living in that culture (Bhawuk& Brislin 2000, Lievens et al. 2003). Morris &Robie (2001) conducted a meta-analysis of theeffects of cross-cultural training on expatriateperformance and adjustment. Their metaanalysis included 16 studies that investigatedadjustment and 25 studies that investigated jobperformance as the focal dependent variable.The mean correlation for the relationshipbetween training and adjustment was 0.12 ( p <0.05), and the correlation for the relationshipbetween training and performance was 0.23( p < 0.05). However, there was substantialvariability in the distribution of effect sizes,suggesting that potential moderators existed(again, we discuss the issue of moderators inCross-culturaltraining: training

conducted forimproving individualeffectiveness and/oradjustment while onassignment in a newculturethe Suggestions for Future Research section).More recently, Littrell et al. (2006) conducteda qualitative review of 25 years (1980–2005)of research addressing the effectiveness ofcross-cultural training in preparing managersfor an international assignment. Littrell et al.(2006) examined 29 prior conceptual reviewsand 16 empirical studies. Overall, they concluded that cross-cultural training is effective atenhancing the expatriate’s success on overseasassignments. They also identified many variables that moderate the effects of training onexpatriate performance, including the timingof the training (e.g., predeparture, while onassignment, and postassignment), family issues(e.g., spouse’s adjustment), attributes of the job(e.g., job discretion), and cultural differencesbetween the home country and the assignmentcountry.Other BenefitsOther research demonstrates the impact oftraining on outcomes other than job performance or on variables that serve as antecedentsto job performance. However, we emphasizethat these additional benefits of training arenot necessarily unrelated to job performance.In fact, in many cases they are indirectly related to performance and, in others, they may berelated to individual and team well-being, variables arguably also indirectly related to job performance. For example, there is a renewed interest in leadership training (Collins & Holton2004, Day 2000). Dvir et al. (2002) implemented a longitudinal randomized field experiment, using cadets in the Israel DefenseForces, in which experimental group leadersreceived transformational leadership training.Transformational leaders exhibit charismaticbehaviors, are able to motivate and provideintellectual stimulation among followers, andtreat followers with individual consideration.Results showed that transformational leadership training enhanced followers’ motivation(i.e., self-actualization needs and willingness toexert extra effort), morality (i.e., internationalization of their organization’s moral values), andwww.annualreviews.org • Benefits of Training and Development 455Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19empowerment (i.e., critical-independent approach, active engagement in the task, and specific self-efficacy). Towler (2003) provided 41business students with (a) no training, (b) presentation skills training, or (c) charismatic in-

fluence training. Charismatic influence training included articulating a vision, appealingto followers’ values, and using autobiography,metaphors, analogies, stories, and self-efficacylanguage. A sample of 102 undergraduates froma different university watched videotaped presentations by the 41 business students. Similarto results of Dvir et al. (2002), Towler (2003)found some evidence in support of the effectiveness of charismatic influence training on theperformance and attitudes of the participantswho watched the videotapes.Another area that has received consistent attention is aviation human factors training. Thisis an important area of research because human error has been consistently identified asone of the main causes of air crashes since thelate 1970s (Edkins 2002). Edkins (2002) conducted a qualitative review of the aviation human factor training literature and concludedthat outcomes of safety and team-based training programs include (a) safety-related bene-fits, including a reduction in lost time related toinjuries, and (b) teamwork-related benefits including improved team performance. Becausesafety-related errors in fields such as aviationand medical care are often the result of team coordination issues (e.g., Morey et al. 2002, Salaset al. 2001), team training emerges as an important intervention. Ellis et al. (2005) conductedan experiment including 65 four-person teams.Individuals participated in a dynamic commandand control simulation in which participantsmonitor activity in a specific geographic region and defend it against invasion by groundor air. Training improved declarative knowledge within the team and, in comparison withuntrained teams, trained teams demonstratedbetter planning and task coordination, collaborative problem solving, and communication innovel team and task environments.The most common training interventionfor improving team communication and teameffectiveness is crew resource management(CRM) training. The overall goal of CRMtraining is to shape cockpit crew attitudes andbehavior to enhance aviation safety. This typeof training is usually conducted using sophisticated flight simulators, and it addresses communication, teamwork, decision-making, andawareness with respect to accidents and incidents and the role played by human error.Goeters (2002) delivered CRM training to aircrews from an eastern European airline. Afterparticipating in training, aircrews substantiallyimproved nontechnical skills (e.g., team building) as well as situation awareness and decisionmaking, each of which contribute to air safety.There are two qualitative literature reviews ofstudies addressing CRM training: O’Connoret al. (2002) reviewed 48 studies, and Salas et al.(2001) reviewed 58 studies. Given that they included overlapping sets of primary studies, itis not surprising that the conclusions of theseliterature reviews converged and determinedthat most studies focused on the benefits regarding attitudes and knowledge at the individual and team levels of analysis. Documented

benefits include positive reactions to training,knowledge of teamwork principles, and aircrewcommunication and performance. A more recent qualitative review by Salas et al. (2006)examined 28 studies published since the Salaset al. (2001) review and included CRM studiesnot only in cockpits but also in other contextssuch as aircraft maintenance and health care.Salas et al. (2006) reported positive effects ofCRM training on trainee reactions, but resultswere mixed in terms of trainee learning and onthe-job behaviors. For example, Jacobsen et al.(2001) found that trainees had high situationalawareness and communicated frequently; however, trainees had difficulties diagnosing medical problems, and no team member assumed thelead or delegated tasks. In general, CRM training was more effective in aviation settings thanin health care settings, where its application ismore recent.In summary, a considerable number of individual studies and meta-analytic reviews provide support for the many benefits of training456 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19for individuals and teams. These benefits include performance as well as variables thatrelate to performance directly (e.g., innovation and tacit skills, adaptive expertise, technical skills, self-management skills, cross-culturaladjustment) or indirectly (e.g., empowerment;communication, planning, and task coordination in teams). In the following section, we review evidence regarding benefits produced bytraining activities at the organizational level.BENEFITS OF TRAININGFOR ORGANIZATIONSFewer than 5% of all training programs areassessed in terms of their financial benefitsto the organization (Swanson 2001). The picture changes among companies recognizedfor their commitment to training. Specifically,the majority of organizations recognized byASTD for innovative training programs measure training impact at some level of organizational effectiveness (Paradise 2007, Rivera& Paradise 2006). Typical organizational performance measures in this latter sample include productivity improvement, sales or revenue, and overall profitability. Overall, research regarding organizational-level benefitsis not nearly as abundant as the literature onindividual- and team-level benefits. Not onlyhave there been relatively few empirical studiesshowing organizational-level impact, but thosestudies that have been done typically use selfreport data and unclear causal link back to training activities (Tharenou et al. 2007). Nevertheless, we review this literature organized into twoareas: benefits related to organizational performance and other benefits.Benefits Related to

Organizational PerformanceSeveral studies conducted in European countries have documented the impact of training onorganizational performance. Aragon-S ´ anchez ´et al. (2003) investigated the relationship between training and organizational performanceby distributing a survey to 457 small andmedium-size businesses in the United Kingdom, the Netherlands, Portugal, Finland, andSpain. Organizational performance was operationalized as (a) effectiveness (i.e., employeeinvolvement, human resource indicators, andquality), and (b) profitability (i.e., sales volume, benefits before interest and taxes, anda ratio of benefit before taxes/sales). Resultsindicated that some types of training activities, including on-the-job training and traininginside the organization using in-house trainers, were positively related to most dimensions of effectiveness and profitability. UbedaGarcıa (2005) conducted a study including 78 ´Spanish firms with more than 100 employees. This study related organizations’ training policies (e.g., functions assumed by thetraining unit, goals of the training unit, nature of training, and how training is evaluated)with four types of organizational-level bene-fits: employee satisfaction, customer satisfaction, owner/shareholder satisfaction, and workforce productivity (i.e., sales per employee).Results suggested that training programs oriented toward human capital development weredirectly related to employee, customer, andowner/shareholder satisfaction as well as an objective measure of business performance (i.e.,sales per employee). Guerrero & BarraudDidier (2004) administered a questionnaire to1530 human resource directors working in largecompanies in France and collected financial information from the companies’ financial directors or through databases approximately oneyear later. Five questions in the survey addressed the extent to which the company implemented training practices. The survey alsoincluded questions about social and organizational performance including work climate,employee attendance, quality of products andservices, and employee productivity. Resultsshowed that 4.6% of the variance in financialperformance was explained by training (via themediating role of social and organizational performance). Finally, Mabey & Ramirez (2005)conducted a study including 179 firms in theUnited Kingdom, Denmark, France, Germany,Norway, and Spain. Human resource managersor equivalent and line managers completed awww.annualreviews.org • Benefits of Training and Development 457Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19survey on training practices. Financial data weregathered from the Amadeus database; a twofactor measure of financial performance wascomputed based on (a) operating revenue peremployee and (b) cost of employees as a percentage of operating revenues. Results indicatedthat the manner in which management development was implemented accounted for substantive variance in the financial performancemeasure. Specifically, firms with line managers

reporting that management development programs are valued were more likely to have apositive relationship between management development and financial performance.Because of the paucity of primary-level studies examining the benefits of training at theorganizational level, the meta-analytic reviewspublished to date include only a small number of studies. In the meta-analysis by Arthuret al. (2003), the researchers also examined theimpact of training on organizational-level results. Only 26 studies (N = 1748) examinedthe benefits of training at the organizationallevel. Results showed that the benefits of training vary depending on the type of training delivery method, the skill or task being trained,and the measure used to assess effectiveness.However, the mean d for organizational resultswas 0.62, precisely the same effect size foundfor the impact of training on job-related behaviors and performance at the individual level ofanalysis. Similarly, the Collins & Holton (2004)meta-analysis of managerial leadership development programs included only seven studies(of 83) that included information regardingthe relationship between training and tangible organizational-level benefits (e.g., reducedcosts, improved quality and quantity). The totalsample size in these seven studies was 418 andthe overall mean d was 0.39, favoring trainingcompared to control groups.Other BenefitsBenefits of training have been documentedfor variables other than organizational performance. Again, many of these additional outcomes are related to performance indirectly.For example, Sirianni & Frey (2001) evaluatedthe effectiveness of a nine-month leadership development program at a financial services company with presence in Canada, Europe, LatinAmerica, and Asia. Participants included 29 service and operations market managers, districtmanagers, and a regional president. The 13training modules (e.g., managing conflict, motivating others, priority setting) were deliveredin three-hour sessions every two weeks. Measures of program effectiveness included ratingsoffered by participants as well as other objective measures including regional scorecard results, which were collected on a monthly basisand used to determine service quality. Data collected approximately at the beginning and endof the training program suggested that, at a regional level, there were improvements on six ofthe seven scorecard components: overall tellererrors, teller out of balance, number of depositslips left in envelopes, business retention, tellersecret shopper ratings, and new account secretshopper surveys.Benson et al. (2004) collected data from eachof the 9439 permanent, salaried employees ofa large high-technology manufacturing firm toassess the effects on employee turnover of theorganization’s investment in employee development via a tuition reimbursement program.Investment in training via tuition reimbursement decreased turnover while employees werestill taking classes. However, turnover increased

once employees obtained their degrees if theywere not promoted. This study points to theneed to offer development opportunities onan ongoing basis and to align training effortswithin an organization’s performance management system (Aguinis 2009).The nature of an organization’s reputation influences how customers (and potentialcustomers), competitors, and even employeesinteract with the organization. Thus, an organization’s reputation can have important fi-nancial consequences. Clardy (2005) noted thatan organization’s reputation can be affectedby its training practices. Organizations suchas the SEALs (special operations force of theU.S. Navy) are legendary for their rigorous and458 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19extensive training programs. One of the goalsof the SEAL training, as frequently shown ontelevision and other media, is to “constructa reputation of SEALs as totally dedicated,ruthless, and lethally skilled operators whowould be a totally invincible foe” (Clardy 2005,p. 291). Similarly, although not empirically documented yet, another possible benefit of training could be social capital, via relationship building, norm development, and institutional trust(Brown & Van Buren 2007). In other words,training has the potential to affect importantsocial processes that in turn are likely to affectorganizational-level outcomes.Darch & Lucas (2002) conducted interviewswith 20 small and medium-size business owners in the food industry in Queensland (Australia). These companies dealt with productssuch as meat, fruit, vegetables, seafood, andgrains. The main goals of this study were tounderstand business owners’ barriers to theiruptake of e-commerce and to identify strategies enabling them to engage in e-commerceinitiatives. Results showed that of several barriers to e-commerce, an important one was thelack of training. Study participants noted thattraining would be a key strategy by which theycould address their need to acquire the necessary knowledge and technological skills. Inshort, training was seen as an important enablerfor e-commerce, a key strategic direction for thesuccess of many of these small and medium-sizebusinesses.In summary, many studies have gatheredsupport for the benefits of training for organizations as a whole. These benefits include improved organizational performance (e.g., profitability, effectiveness, productivity, operatingrevenue per employee) as well as other outcomes that relate directly (e.g., reduced costs,improved quality and quantity) or indirectly

(e.g., employee turnover, organization’s reputation, social capital) to performance. In the nextsection, we review evidence regarding benefitsproduced by training activities at the societallevel.BENEFITS OF TRAININGFOR SOCIETYMost of the research on the relationship between training activities and their benefits forsociety has been conducted by economists; thefocal dependent variable is national economicperformance. Overall, this body of literatureleads to the conclusion that training efforts produce improvements in the quality of the laborforce, which in turn is one of the most important contributors to national economic growth(e.g., Becker 1962, 1964). Economists coinedthe terms “human capital” and “capital formation in people” in referring mainly to schoolingand on-the-job training (Wang et al. 2002).An illustration of this type of analysis is astudy by van Leeuwen & van Praag (2002),who calculated the costs associated with on-thejob training and the impact of such training oncountry-level macroeconomic variables. Theseresearchers concluded that if employers receivea tax credit of 115 per employee trained,the total expense for the country would be11 million, but 114 million would be generated in increased revenue resulting from thenew skills acquired.In addition to economic growth and otherrelated financial outcomes, training activitieshave the potential to produce benefits such asthe inclusion of the country in powerful economic blocks (e.g., European Union). This isbecause some of the requirements imposed oncountries to be part of these blocks includehuman capital development. Accordingly, inrecognition of the benefits of training at the societal level, many countries encourage nationalscale training and development projects as amatter of national policy (Cho & McLean2004). Consider the following selective evidence.In the Pacific Islands, a region of Oceaniawith more than 10,000 islands in the South Pacific Ocean, the population is dispersed overlarge distances and is vulnerable to numerous environmental threats and natural disasters (Bartlett & Rodgers 2004). These islandswww.annualreviews.org • Benefits of Training and Development 459Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19constitute 22 different political entities, mostof the economies are small, education is generally good at the elementary level but notthe secondary level, and in-company trainingis limited. The area is very diverse economically, socially, and culturally. However, the Pacific Islands, led by the regional intergovernmental Secretariat of the Pacific Communityand the Pacific Islands Forum Secretariat, havedeveloped a common and unique vision of people as “the most important building block for

economic, social, and cultural development”(Bartlett & Rodgers 2004, p. 311). This peoplecentered approach assumes that investment inhuman capital is fundamental for achieving societal prosperity.In the United Kingdom, the governmentwishes to improve the skills of the workforceand encourages the development of lifelonglearning practices through a variety of organizations and initiatives (Lee 2004). Although thegovernment leads these initiatives, they give astrong voice to employers, trade unions, professional bodies, and other stakeholders in thebusiness sector. For example, the organizationInvestors in People gives awards to organizations that implement excellent practices in thetraining of individuals to achieve business goals.Different organizations can use different meansto achieve success through their people, so Investors in People does not prescribe any onemethod but instead provides a framework tohelp organizations find the most suitable meansfor achieving success through people (Investorsin People Standard 2006).The recognition of the importance oftraining activities led India in 1985 to becomethe first nation in the Asia-Pacific regionto create a Ministry of Human ResourceDevelopment (Rao 2004). This ministry wascreated by then Prime Minister Rajiv Ghandi,who had a vision that investment in humancapital would be an essential tool for thecountry’s development. Accordingly, the publicsector, which had traditionally been the largestemployer in India, assisted in the creation ofcorporate training departments. Examples oforganizations with such departments includeHindustan Machine Tools, Bharat Heavy Electricals, Hindustan Aeronautics, State Bank ofIndia, Steel Authority of India, and Coal India.Poland is an additional interesting illustration given its transition from a centralized economy under Soviet control to a member of theEuropean Union in May 2004. Under Sovietcontrol with a command economy, and virtuallyfull state ownership in all sectors, a typical Polish employee was “chronically suspicious, full ofsour demand, unable to take responsibility or tocommit himself, ever ready to wallow in his ownmisery and misfortune” (Tischner 1992 as citedin Szalkowski & Jankowicz 2004, p. 347). Tosay the least, the majority of employees did notpossess the attitudes and skills needed to meetthe demands of a market economy. In addition,that thousands of employees were on the country’s payroll without making value-added contributions became obvious as several industriesshrunk their workforces. For example, the coalmining industry went from about 500,000 employees in the mid-1990s to about 100,000 employees a

decade later (Szalkowski & Jankowicz2004). Thus, in Poland now there is a generalfeeling that “further progress in the commercial sphere can only come through engagementin the process of globalization and through thedevelopment of national human resources viatraining, education, and research” (Szalkowski& Jankowicz 2004, p. 350).In summary, the recognition of the benefitsof training activities for society has led manycountries around the world to adopt nationalpolicies to encourage the design and delivery oftraining programs at the national level. Thesepolicies have the goal to improve a nation’s human capital, which in turn is related to greatereconomic prosperity.HOW TO MAXIMIZE THEBENEFITS OF TRAININGIn the next section, we summarize recent theoryand research oriented toward improving theeffectiveness and impact of training. Roughlyfollowing the instructional design model(Goldstein & Ford 2002), we organize this460 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19review around stages of needs assessment andpretraining states, training design and delivery,training evaluation, and transfer of training.Needs Assessment andPretraining StatesConducting a thorough needs assessment before training is designed and delivered helpsset appropriate goals for training and ensurethat trainees are ready to participate (Blanchard& Thacker 2007). However, there continuesto be little theoretical or empirical work onneeds assessment (Kraiger 2003). One exception is a study by Baranzini et al. (2001), whodeveloped and validated a needs assessmenttool for the aviation maintenance industry. Asecond example of a theory-based approachto conducting a needs assessment is a studyby Fowlkes et al. (2000), who evaluated anevent-based knowledge-elicitation technique inwhich subject matter experts (SMEs) are askedabout team situational awareness factors in response to a military helicopter operation. Results showed that more experienced expertsidentified a richer database of cues and weremore likely to identify response strategies, supporting the conclusion that using SMEs duringa needs assessment maximizes the benefits oftraining. The finding that expertise affects the

quality of needs assessment data is consistentwith the conclusions of Morgeson & Campion(1997), who reported that the accuracy of jobanalysis data may be compromised by up to16 different systematic sources of error. Theseinclude social influence and self-presentationinfluences and limitations in information processing (cf. Ford & Kraiger 1995). More empirical research is necessary to understand howthe quality of training design and delivery is affected by systematic and random influences onthe quality of needs assessment data.Consideration of the pretraining states orindividual characteristics of trainees also enhances the benefits of training. Tracey et al.(2001) collected data from 420 hotel managerswho attended a two-and-a-half-day managerialknowledge and skills training program. ResultsTransfer of training:the extent to whichnew knowledge andskills learned duringtraining are applied onthe jobPretrainingmotivation:individual attitudes,expectancies, andself-beliefs likely toinfluence willingnessto attend training andlearning duringtrainingshowed that managers’ job involvement, organizational commitment, and perceptions of thework environment (i.e., perceived support andrecognition) were predictive of pretraining selfefficacy, which in turn was related to pretrainingmotivation. Pretraining motivation was relatedto posttraining measures of utility reactions, affective reactions, declarative knowledge scores,and procedural knowledge scores. Pretrainingmotivation has also been shown to be relatedto trainee personality (Rowold 2007), traineeself-efficacy and training reputation (Switzeret al. 2005), as well as reactions to prior training courses (Sitzmann et al. 2007). In a fieldstudy of learners in a traditional classroom orblended learning course, Klein et al. (2006)found that learners had a higher motivation tolearn when they had a high learning goal orientation (rather than a lower learning goal orientation) and when they perceived environmentalconditions (e.g., time, Internet access) as learning enablers (rather than as barriers). Motivation to learn, in turn, was related to learnersatisfaction, metacognition, and course grade.Kozlowski et al. (2001) showed that trait and

manipulated learning orientation had independent effects on participants’ self-efficacy andstructural knowledge.More generally, Colquitt et al. (2000) summarized 20 years of research on factors affecting trainee motivation. Their meta-analysisshowed that training motivation was signifi-cantly predicted by individual characteristics(e.g., locus of control, conscientiousness, anxiety, age, cognitive ability, self-efficacy, valenceof training, and job involvement) as well as bysituational characteristics (e.g., organizationalclimate).In summary, two ways to maximize the benefits of training is to conduct a needs assessment using experienced SMEs and to makesure trainees are ready and motivated for training. For example, training readiness can beenhanced by lowering trainees’ anxiety abouttraining, demonstrating the value of trainingbefore training begins, and making sure employees are highly involved and engaged withtheir jobs.www.annualreviews.org • Benefits of Training and Development 461Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19Training Design and Training DeliveryResearch on training design and delivery can becategorized into two general themes: researchon new approaches to engage learners in meaningful learning processes and research on specific training methods. Several studies in eachof these two domains provide information onhow to maximize the benefits of training.Linou & Kontogiannis (2004) compared immediate recall and follow-up retention levels(after six weeks) in four groups. Trainees wereproduction engineering undergraduates. Theprimary objective of training was to help participants develop diagnostic strategies to identify symptoms and problems given a set of faultscenarios. One group received systemic training(focusing on structural, functional, and physicalrelationships among subsystems), two groupsreceived either low-level or high-level diagnostic information, and one group received generaltraining on theories related to manufacturingplants. The theory group and both diagnosticgroups performed better on the immediate recall measures, whereas the systemic group performed better on the retention measure, presumably because group members built a morestable organization (mental model) of the training content. Similarly, Holladay & Quinones ˜(2003) showed that adding variability to practice trials resulted in better long-term retention, presumably because trainees had to exertgreater effort during skill acquisition.Researchers continued to explore errortraining as a strategy for increasing performance and maintaining performance underchanging environmental demands. In contrastto traditional training design approaches thatfocus on teaching correct methods (and avoiding errors), error management training encourages

trainees to make errors and engage inreflection to understand the causes of errorsand strategies to avoid making them in the future. Heimbeck et al. (2003) implemented errortraining using a sample of undergraduate students. The task consisted of learning how to usespreadsheet software (i.e., Excel). Performancewas assessed by raters who reviewed videotapedsessions and rated whether discrete tasks suchas entering data correctly or formatting a tablewere performed correctly. Trainees who wereprovided the opportunity to make errors (together with explicit instructions encouragingthem to learn from these errors) performed significantly higher than those in error-avoidantconditions. In a follow-up experiment, participants learning how to use presentations software (i.e., PowerPoint) performed better in theerror training with metacognition prompting(i.e., instructions encouraging trainees to thinkexplicitly about what the problem is, what theyare trying to achieve, and so forth) comparedto the error-avoidant condition (Keith & Frese2005). A recent meta-analysis by Keith & Frese(2008) reported that overall, error managementtraining was superior to either proceduralizederror-avoidant training or exploratory trainingwithout error encouragement (d = 0.44). Effect sizes were moderated by two important factors: Effect sizes were greater for posttransfermeasures compared to within-training performance, and for adaptive transfer tasks (as opposed to tasks structurally similar to training).Thus, error training may be appropriate for developing a deeper task understanding that facilitates transfer to novel tasks.Research on error training highlights theimportance of understanding and affectinglearner states and answers long-standing callsto engage in research on how individualslearn, not in just the latest training fads (e.g.,Campbell 1971, Kraiger et al. 1993). For example, Schmidt & Ford (2003) reported thatlevels of meta-cognitive activity mediated theeffects of a computer-based training programon declarative knowledge, task performance,and participants’ self-efficacy. An increasingamount of evidence suggests that trainees’self-regulatory processes mediate the training–learning relationship. Self-regulation refers tothe extent to which executive-level cognitivesystems in the learner monitor and exert control on the learner’s attention and active engagement of training content (Vancouver &Day 2005). Chen et al. (2005) trained 156462 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19

individuals in 78 teams on a flight simulator taskand examined adaptive performance on subsequent performance trials. Training participants’self-regulation processes mediated the effects oftraining on task self-efficacy and their adaptiveperformance across trials. Two studies reportedby Sitzmann et al. (2008) used repeated trials to demonstrate that while engaging in selfregulatory processes facilitates learning, the effects improve over time.Technology-delivered instruction (TDI)continues to become increasingly popular inindustry (Paradise 2007), although researchershave been slow to study factors that facilitateor limit its effectiveness (Brown 2001, Welshet al. 2003). TDI includes Web-based trainingand instruction on single workstations, PDAsand MP3 players, as well as embedded just-intraining in work-related software (Aguinis et al.2009). One potential drawback of TDI is that ittransfers more control to learners to make decisions about what and how to learn (Noe 2008).A recent meta-analysis by Kraiger & Jerden(2007) indicated that high learner control hasonly marginally beneficial effects on learning,and in many studies, high control has a negative effect. Low-ability or inexperienced learners under high learner-control conditions maymake poor decisions about what and how tolearn (DeRouin et al. 2004). One promisingtechnique for coupling learner-driven instruction with technology is to supplement learnercontrol with adaptive guidance. Specifically,Bell & Kozlowski (2002) concluded that providing adaptive guidance in a computer-basedtraining environment substantively improvedtrainees’ study and practice effort, knowledgeacquired, and performance.Better hardware and software capabilitieshave allowed for improvements in the delivery of various forms of remote training. Zhaoet al. (2005) conducted a meta-analysis comparing face-to-face and distance education coursesand found no significant differences betweenformats. A meta-analysis by Sitzmann et al.(2006) examined the relative effectiveness ofWeb-based instruction over classroom instruction. In an analysis of 96 published and unAdaptive guidance:providing trainees withdiagnostic, futureoriented informationto aid decisions aboutwhat and how much tostudy and practice intrainingpublished studies involving 19,331 trainees, theresearchers found that Web-based instructionwas 6% more effective than classroom instruction for teaching declarative knowledge but wasequally effective for teaching procedural knowledge. However, when the same instructionalmethods were used in both forms of instruction, there were no differences in the relative

effectiveness of either media. Thus, the smalladvantage of Web-based instruction over classroom training may be due more to the use ofnovel (and effective) training strategies than tothe medium per se.Researchers are also exploring the impactof novel training technologies on outcomesother than learning. For example, Wesson &Gogus (2005) compared two different methods for delivering socialization training to newemployees: a group social-based program andan individual computer-based program. Thisquasi-experiment included 261 new employees from a large technology-based consultingfirm. The social-based program was substantially more successful in socializing new employees regarding people, politics, and organizational goals and values.In summary, the application of appropriatetraining design and delivery methods can helpmaximize the benefits of training. In terms ofdesign, recent research suggests that the bene-fits of training are enhanced by applying theorybased learning principles such as encouragingtrainees to organize the training content, making sure trainees expend effort in the acquisition of new skills, and providing trainees withan opportunity to make errors together withexplicit instructions to encourage them to learnfrom these errors. In terms of training delivery,recent research indicates that the benefits of using technology can be enhanced by providingtrainees with adaptive guidance.Training EvaluationThe Kirkpatrick four-levels approach to training evaluation continues to be the most widelyused training evaluation model among practitioners (e.g., Sugrue & Rivera 2005, Twitchellwww.annualreviews.org • Benefits of Training and Development 463Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19Trainingeffectiveness: thestudy of individual-,group-, ororganizational-levelfactors that influencelearning in trainingand transfer aftertraininget al. 2000), although the approach continues tobe criticized by researchers (e.g., Holton 2005,Kraiger 2002, Spitzer 2005). There has beenlittle empirical work in the twenty-first century on designing and validating new evaluation measures, although there have been severalconceptual contributions to frameworks guiding evaluation decisions (Holton 2005, Kraiger2002, Spitzer 2005, Wang & Wilcox 2006).Kraiger (2002) proposed a decision-basedevaluation model. The model frames decisions

about how to measure training impact aroundthe intended purpose for evaluation—purposesof decision making, marketing, and providingfeedback to participants, instructors, or instructional designers. The model also emphasizestailoring evaluation measures to the needsand sophistication of the intended audience(s).It proposes a comprehensive taxonomy forevaluation, including assessing the trainingprogram, changes in the learner, and changesin the organization. Notably, a number ofauthors have criticized the lack of rigor intraining evaluation designs (e.g., Edkins 2002,Littrell et al. 2006, O’Connor et al. 2002, Wang2002). Although Kraiger’s model emphasizesthe importance of solid designs (as comparedto more or better measures), he argued thatmeaningful evaluation can be done with incomplete research designs, a point raised earlierby Sackett & Mullen (1993) and Tannenbaum& Woods (1992), and later echoed by Kraigeret al. (2004). The internal referencing strategy,in which effect sizes for trained behavior (orknowledge) are compared to effect sizes fornontrained behaviors (or knowledge), was usedin several studies as an alternative to morerigorous designs with a control group (Aguinis& Branstetter 2007, Frese et al. 2003).How people react to training has continued to receive attention in the literature, particularly around the question of how best touse reactions for improving training design anddelivery. Morgan & Casper (2000) factor analyzed a set of training reaction items from 9128government employees and found evidence oftwo underlying factors: overall affect towardtraining and perceived utility of the training.Aguinis & Branstetter (2007) also discussed theneed to discriminate between affective and utility reactions because utility reactions are morestrongly related to learning than are affectivereactions. K.G. Brown (2005) proposed a theoretical structure with distinct factors (enjoyment, relevance, and technology satisfaction) aswell as a second-order factor of overall satisfaction, related in part to trainee affect. Data fromtwo studies reported by K.G. Brown (2005) supported this model. In a study of 181 Koreanworkers, Lim & Morris (2006) showed thatthe relationship between perceived applicability (training utility) and perceived application(transfer) decreased as the time between training and measurement increased.There continues to be calls for establishingthe return on investment for training, particularly as training continues to be outsourced andnew forms of TDI are marketed as cost effective. Although the tools and strategies for showing return on investment are well known (e.g.,Kraiger 2002, Phillips & Phillips 2007, Spitzer2005), as the above review of organizationallevel outcomes indicated, there remain few published

studies of return on investment.In summary, it is important not only that thebenefits of training be maximized, but also thatthese benefits are documented. Recently proposed conceptualizations and measures of training effectiveness can enhance the perceivedbenefits of training from the perspective of thevarious stakeholders in the process, includingthose who participate in training, those whodeliver it, and those who fund it (e.g., organizations). It is important that training evaluationinclude a consideration of the intended purposeof the evaluation, the needs and sophisticationof the intended audience, and the variables related to various types of utility reactions (i.e.,affective versus utility).Transfer of TrainingEvidence described in the previous sectionsforcefully makes the point that training works,in the sense that it has an impact on individuals and teams and on the organizations and464 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19the societies in which they function. However,training efforts will not yield the anticipated effects if knowledge, attitudes, and skills acquiredin training are not fully and appropriately transferred to job-related activities. Thus, the studyof transfer of training focuses on variables thataffect the impact of training on transfer of training as well as on interventions intended to enhance transfer.Research on moderators of the trainingtransfer relationship has focused primarilyon workgroup factors—supervisory and peersupport—as well as on organizational-level factors. Holton et al. (2003) used the LearningTransfer System Inventory (Holton et al. 2001)to examine differences in transfer characteristics across eight different organizations, threeorganization types, and three training types.The Learning Transfer System Inventory includes 68 items encompassing 16 conceptualconstructs that in turn are organized in to fourmajor groups: trainee characteristics (learnerreadiness and self-efficacy), trainee motivation(motivation to transfer, transfer effort to performance expectations, and performance to outcome expectations), work environment (performance coaching, supervisor support, supervisorsanctions, peer support, resistance-openness tochange, positive personal outcomes, and negative personal outcomes), and ability (perceivedcontent validity, personal capacity for transfer,transfer design, and opportunity to use). Analyses showed that scale scores differed across individual organizations, organization types, andtraining types, indicating that transfer environments are probably unique to each trainingapplication.Regarding organizational-level factors,Kontoghiorghes (2004) emphasized the importance of both transfer climate and the workenvironment in facilitating transfer. Transfer

climate includes a number of factors includingsupervisory and peer support, but also taskcues, training accountability, opportunities topractice, opportunities to use new knowledgeand skills, and intrinsic and extrinsic rewardsfor using new knowledge. Work environmentfactors include sociotechnical system designvariables (e.g., fostering job involvement, employee involvement, information sharing), jobdesign variables (e.g., fostering task autonomy,job match), quality management variables (e.g.,employee commitment to quality work, customer focus), and continuous learning variables(e.g., continuous learning as a priority, rewardsfor learning). With a sample of 300 employeesin the information technology division of alarge U.S. automaker, Kontoghiorghes (2004)found support for both climate and workenvironment factors as predictors of transfermotivation and performance.Although there continue to be claims thatthe transfer climate is critical to transfer oftraining, empirical studies of transfer climatehave yielded mixed results. Richman-Hirsch(2001) found that posttraining transfer enhancement interventions were more successfulin supportive work environments. Chiaburu &Marinova (2005) found no effects for supervisory support but positive results for peer support in a study of 186 trained employees. van derKlink et al. (2001) also found no effect for supervisory support on two studies involving banktellers. An important study for understandingthese mixed results may be that of Pidd (2004),which examined the role of peer and supervisorysupport for transfer of training on workplacedrug and alcohol awareness. Pidd reported thatthe influence of workplace support on transferwas moderated by the extent to which traineesidentified with the groups that providedsupport.A number of studies have investigated intraining strategies for improving transfer, withlittle or mixed success. T.C. Brown (2005) examined goal setting at the end of training bycomparing three conditions: setting distal goals,setting proximal plus distal goals, and tellingparticipants to do their best. Contrary to expectations, participants instructed to do their bestout-performed trainees told to set distal goals,and did as well as participants told to set proximal plus distal goals. In contrast, RichmanHirsch (2001) reported positive effects fora posttraining goal-setting intervention, particularly in supportive work environments.www.annualreviews.org • Benefits of Training and Development 465Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19Gaudine & Saks (2004) found no differences

between a relapse prevention and transfer enhancement intervention for nurses attendinga two-day training program. The researcherssuggested that transfer climate and supportwere likely more potent determinants of transfer than were posttraining interventions. Huint& Saks (2003) examined managers’ reactions toeither a relapse prevention intervention or oneemphasizing supervisor support. For a sampleof 174 managers and students, there was no significant difference in preferences for either intervention, although there was a slight tendencyto prefer the supervisor support intervention.In summary, recent research has reportedon how to ensure that the changes that takeplace during training are transferred back to thejob environment. Taken together, this body ofresearch points to the importance of considering interpersonal factors such as supervisoryand peer support as moderators of the trainingtransfer of training relationship. More distalorganizational-level factors such as transfer climate have not received consistent support asimportant moderators.CONCLUSIONS ANDSUGGESTIONS FORFUTURE RESEARCHWe take the point of view that training leadsto important benefits for individuals and teams,organizations, and society. The present reviewsuggests that these benefits range from individual and team performance to the economicprosperity of a nation. To understand these benefits of training, we adopted a multilevel, multidisciplinary, and global perspective. We alsoincluded a discussion of how to maximize thebenefits of training. These factors include paying attention to needs assessment and pretraining states of trainees (e.g., trainee motivation),training design and delivery (e.g., advantages ofusing error training), training evaluation (e.g.,documenting training success differently depending on the stakeholder in question), andtransfer of training (i.e., the importance of interpersonal factors).Implications for PracticeThe organizations that are able to realize thebenefits of training that are documented in thisreview are able to move away from viewing thetraining function as an operational function orcost center to one that is value driven (Fox2003). For example, the consulting companyPricewaterhouseCoopers has cut costs in manyareas but increased its investment in employeetraining to about $120 million per year. Anotherleading consulting firm, Booz Allen Hamilton,believes in developing workers as a long-termcompetitive advantage and manages its learning functions as revenue centers (Fox 2003).Managers and other decision makers in theseorganizations prefer information and data on

business-related results to make decisions abouthow to allocate resources, including resourcesfor training activities (Mattson 2005). Trainingfor the sake of training, an approach that focuseson developmental ideals and supportive organizational environments, is not aligned with today’s business realities, including compressedcareer progression pathways, budgetary cutsand constraints, highly competitive environments, and market-driven economic philosophies (McGuire et al. 2005). Designing, delivering, evaluating, and clearly documenting thebenefits of training using the information included in this review will allow the human resource management function to be a strategicorganizational player and to move away fromthe negative connotations (e.g., “welfare secretaries”) associated with this function in thetwentieth century (Hammonds 2005, Jacoby2004, Kraiger et al. 2004).Suggestions for Future ResearchWe also identify future directions for research.First, we suggest that the benefits of training may have a cascading effect such thatindividual-level benefits (e.g., individual performance) affect team-level benefits (i.e., team performance), which in turn affect organizational(i.e., profitability) and societal (i.e., human capital) outcomes. However, research is needed to466 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19understand the factors that facilitate a smoothcross-level transfer of benefits. Of special interest is the question of vertical transfer: howeffects of training on individuals (increasedknowledge and skills) translate directly into better functioning at the team and organizationallevel. Although good conceptual models of thisprocess exist (e.g., Kozlowski & Salas 1997,Kozlowski et al. 2000), there has been littleempirical research. Conceptual work on suchcross-level transfers in other areas of appliedpsychology may prove useful in this regard (e.g.,Fiol et al. 2001).Second, a gap exists between the applied andscholarly literatures regarding the use of cycletime as a variable to assess training effectiveness (Holton 2003). Effect sizes for the qualityof performance may not be the same as those forthe speed at which individuals, teams, and organizations identify and implement solutions tonew problems. Given competition and marketrelated pressures, organizations need to realizethe benefits of training faster and faster. Research on this issue is lacking in the scholarlyliterature; work is needed regarding the factorsthat can accelerate the realization of the benefitsof training at various levels of analysis. This research may profit from initial studies on the effects of training on innovation and performanceadaptability.Third, although the role of affect has been

acknowledged in the measurement of reactionsto training, affect could play a more centralrole in the training process in general. Priorresearch has focused on the relationship between liking a training program (positive reactions) and employee learning or subsequentperformance (Alliger et al. 1997), but has paidless attention to relationships between affectivestates during training and learning. Offeringemployees training opportunities can be seen asa message that the organization cares for its employees (Aguinis 2009). This perception may inturn produce benefits even though training design and delivery may not be optimal. In short,future research could investigate the extent towhich training opportunities are seen as a message that the organization cares, which couldbe a powerful and important message in today’s corporate world plagued by downsizingand employee layoffs.Fourth, we identified the need to study moderators in several areas. Moderators explain theconditions under which an effect or relationshipis likely to be present and likely to be stronger(Aguinis 2004, Aguinis et al. 2005). Training research has consistently found support for bothindividual and situational moderators on relationships among training interventions, traineelearning, and workplace performance (Kraiger& Aguinis 2001). For example, in this reviewwe highlighted the importance of moderatorsin the study of the relationship between behavior modeling and training outcomes, the relationship between cross-cultural training and expatriate adjustment, the relationship betweentraining and transfer. However, additional research is needed to understand fully the rangeand impact of these moderators. Ideally, thisresearch would be driven by better theory onhow proposed situational and individual moderators operate to effect learning and transfer.For example, how do organizational systems foraccountability influence trainee motivation orcognitive effort during training? How does cognitive ability influence both the rate and depthof learning during training?We close by emphasizing the overwhelming evidence in favor of the benefits that training produces for individuals and teams, organizations, and society. An important challengefor the practice of training is to integrate thetraining function with employee selection, performance management, rewards, and other human resource management practices (Aguinis2009, Aguinis & Pierce 2008, Cascio & Aguinis2005). Training alone may not be able to realizeits benefits if it is disconnected from other human resource management functions or the organization is dysfunctional in other areas (e.g.,interpersonal relationships). Training will havethe greatest impact when it is bundled togetherwith other human resource management practices and these practices are also implementedfollowing sound principles and empiricalresearch.www.annualreviews.org • Benefits of Training and Development 467Annu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.org

by Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19SUMMARY POINTS1. The current review differs from previous Annual Review of Psychology articles on the topicof training and development because its approach is fundamentally multidisciplinary,multilevel, and global.2. There is considerable support for the many benefits of training for individuals and teams.These benefits include performance as well as variables that relate directly (e.g., innovation and tacit skills, adaptive expertise, technical skills, self-management skills, crosscultural adjustment) or indirectly (e.g., empowerment; communication, planning, andtask coordination in teams) to performance.3. Many studies have gathered support for the benefits of training for organizations as awhole. These benefits include improved organizational performance (e.g., profitability,effectiveness, productivity, operating revenue per employee) as well as other outcomesthat relate directly (e.g., reduced costs, improved quality and quantity) or indirectly (e.g.,employee turnover, organization’s reputation, social capital) to performance.4. The recognition of the benefits of training activities for society has led many countriesaround the world to adopt national policies to encourage the design and delivery oftraining programs at the national level. The goal of these policies is to improve a nation’shuman capital, which in turn is related to greater economic prosperity.5. Several interventions are effective at enhancing the benefits of training. First, organizations should conduct a needs assessment using experienced subject matter experts tomake sure trainees are ready and motivated for training. Second, in terms of design, organizations should apply theory-based learning principles such as encouraging traineesto organize the training content, making sure trainees expend effort in the acquisitionof new skills, and providing trainees with an opportunity to make errors together withexplicit instructions to encourage them to learn from these errors enhances the benefitsof training. Third, in terms of training delivery, the benefits of using technology fortraining delivery can be enhanced by providing trainees with adaptive guidance. Fourth,it is important not only that the benefits of training be maximized, but also that thesebenefits are documented. Recently proposed conceptualizations and measures of trainingeffectiveness can enhance the perceived benefits of training from the perspective of thevarious stakeholders in the process, including those who participate in training, thosewho deliver it, and those who fund it (e.g., organizations). Finally, recent research pointsto the importance of considering interpersonal factors such as supervisory and peer support as moderators of the relationship between training and transfer of training back tothe work environment.6. Designing, delivering, evaluating, and clearly documenting the benefits of training usingthe information included in this review will allow the human resource management function to be a strategic organizational player and to move away from the negative connotations (e.g., “welfare secretaries”) associated with this function in the twentieth century.7. Future research is needed in several areas. For example, the benefits of training may havea cascading effect such that individual-level benefits (e.g., individual performance) affectteam-level benefits (i.e., team performance), which in turn affect organizational (i.e., profitability) and societal (i.e., human capital) outcomes. However, future research is needed468 Aguinis·KraigerAnnu. Rev. Psychol. 2009.60:451-474. Downloaded from www.annualreviews.orgby Rice University on 12/20/11. For personal use only.ANRV364-PS60-17 ARI 27 October 2008 16:19to understand the factors that facilitate a smooth cross-level transfer of benefits. Second,

a gap exists between the applied and scholarly literatures regarding the use of cycle timeas a variable to assess training effectiveness. Third, although the role of affect has beenacknowledged in the measurement of reactions to training, affect has the potential to playa more central role in the training process in general. Finally, this review identifies theneed to study moderators, including moderators of the relationship between behaviormodeling and training outcomes, the relationship between cross-cultural training andexpatriate adjustment, and the relationship between training and transfer.8. Training alone may not be able to realize its benefits if it is disconnected from other humanresource management functions or if the organization is dysfunctional in other areas (e.g.,interpersonal relationships). Training will have the greatest impact when it is bundledtogether with other human resource management practices and these practices are alsoimplemented following sound principles and practices based on empirical research.DISCLOSURE STATEMENTThe authors are not aware of any biases that might be perceived as affecting the objectivity of thisreview.