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Needs Assessment
in Business and Industry |

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Dr.
Sleezer |
Overview of Human Resource
Development
Organizations have three kinds of
resources
HRD links human resources to
organizational goals
 | Executives are being held more accountable for human
performance improvement |
Key Distractions to Reaching the
Goals
 | most general managers know little about pi |
 | many developers do not know how to connect to the
organization mission, strategy, and performance goals |
 | most individuals do not understand how organizational
systems work |




3 Key Questions
 | Will individuals perform better after the
intervention? |
 | Will the process perform better after the
intervention? |
 | Will the organization perform better after the
intervention? |
Responsible Performance
Improvement Efforts Begin with Performance Analysis
 | Specifying an important performance goal and the
performance level that is needed |
The AH-HA:
 | Analysis and follow through are the means for
accomplishing high performance returns |
What would it take to make this presentation a
responsible performance improvement effort?
Exercise:
 | Participants at each site work together to analyze their
needs. |
 | Elect a group leader and reporter. |
 | In minutes present a 2 min report that describes your
needs for this session including
 | what your needs are for this session |
 | what you already know about needs assessment |
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The AH-HA
 | Performance needs vary depending
 | on who determines them |
 | the process that is used |
 | and the situation |
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Consulting Skills: Consultant - Client Differences
 | Consultant has influence but no direct power |
 | Client/Manager has direct control |

Expert Role
 | The consultant makes decisions based on expertise, plans,
and implements the main events |
 | Two-way communication is limited |
 | The manager elects to play an inactive role, but judges and
evaluates after-the-fact |
 | Problems: hard to get accurate diagnosis of problem or
solution commitment |
Pair of Hands
 | manager controls the project |
 | the consultants goal is to apply specialized knowledge
to the situation |
 | two-way communication is limited |
 | Problems: success depends on the managers diagnosis.
Consultant can be scapegoated. |
Collaborative
 | consultant and client both share responsibility for
action planning, implementation, and results |
 | two-way communication and respect for the responsibilities
and expertise |
 | Problems: managers with the expert or pair of hands views can
see collaboration efforts as indifference or insubordination |
Individual Exercise
 | write down 3 resources that you bring to the consulting
team |
 | write down 3 resources that you hope someone else brings to
the team |
Concepts for Improving Performance
 | Performance is a latent construct. |
 | We can measure the table directly |
 | We cannot measure constructs like intelligence, beauty, and
performance directly. |
 | Instead we use indicators to measure performance attributes
and we infer the construct |


Key Points:
 | Performance diagnosis is a problem defining method that
results in accurately identifying the actual and desired performance levels and specifying
interventions to improve performance |
Five Phases of a
Performance Diagnosis:
 | Initial purpose |
 | Performance variables |
 | Performance measures |
 | Performance needs |
 | Improvement Proposal |
Session Agenda
 | Overview of HRD |
 | Assess class needs |
 | Consulting skills |
 | Systems thinking: a
foundation |
 | Diagnosing performance |
Cost-Benefit Evaluation
Agenda
 | measuring costs and benefits
in business and industry |
 | cost-benefit tools |
 | limitations |
 | Business is in business to __________________________________________________ |
 | Are there differences between business and industry and other types of
institutions? |
Context Exercise Directions
 | Work in groups of 4. |
 | Spend 20 min |
 | Fill in as many boxes as
possible |
Cost Benefit Tools
 | can be used with any kind of
performance |
 | measuring costs and benefits
requires defining a performance need, measuring performance, and monitoring improvement |
 | we can also forecast
cost-benefit |
 | tools for measuring
cost-benefit
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Return On Investment
net program
benefits/program costs x 100
e.g., if a program has a benefit of $600,000 and cost of $200,000
ROI = $600,000 -
$200,000/$200,000 x 100 = 200%
For each $1
invested, the return is $2
Benefit-to-cost ratio
 | program benefits/program
costs |
 | e.g., if a program has a
benefit of $600,000 and cost of $200,000 |
 | BCR = $600,000/$200,000 = 3
or 3 to 1 |
 | For each $1 invested, the
return is $3 |
Forecasting Financial Benefit
Basic Formula for
FFB is:
Performance Value - Cost = Benefit
Example: After our
intervention we can expect twenty additional circuit boards at $600 each equally $12,000
Performance Value.
So:
$12,000 - $2,000 (cost of
process change) = $10,000 Benefit
Summary
 | we can measure costs and
benefits |
 | the results depend on who is
doing the measures, what they are measuring, and when the measures take place |
 | have multiple tools is
important |
Additional
References:
 | Swanson, R.A. & Gradous,
D. (1990) Forecasting financial benefits. Jossey Bass |
 | Phillips, J. J.
"Measuring ROI: Progress, Trends, and Strategies." In Action: Measuring
Return on Investment. Alexandria, VA: American Society for Training and Development. |
| Characteristics |
Training in Business and Industry |
Community College Program |
Community Literacy Program |
| Primary Money Source |
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| Purpose |
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| Before Training: basis for content decisions |
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| During Training: Time Frame
Relevance of content
Instructor Power |
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| After Training: Evaluation Measures |
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