Chapter 1 - Competency 1:Describe the effects such factors as the work force, strategic planning, and technology have had on the hospitality training industry.A Case for Training and Development The director of training for a large convention hotel is working with local community agencies to arrange for translators to help train housekeepers and translate the daily departmental pre-shift meetings. A corporate trainer is creating a series of management development on-line sessions for management trainees joining a restaurant company at fifty different locations around the country. A trainer for a small, exclusive country club is collecting and analyzing comments from the last membership survey to determine training objectives. The regional trainer for a franchise operation is planning a portion of a general managers' annual meeting in which they will establish training goals and share regional resources. This is a new model for the franchisees and some resistance is expected, since occupancies and average rates are down from last year. The director of training for a major convention center is conducting the weekly orientation session for a group of thirty new employees.Facilitators, change agents, enablers, organizers, planners, liaisons--these are just a few of the many varied roles of hospitality trainers. Whether in a corporate position overseeing the training function for a number of locations or a trainer for a single property, these professionals are the "internal organizational consultants" that support maximizing employee performance and guest service.What skills are involved in these various roles? How do training functions vary at different corporate, regional, and property levels? What challenges are involved in hospitality training? How is a training issue differentiated from an issue outside of training?To answer these questions, let's first set the stage by describing the hospitality business of today and the human resource opportunities presented by a changing labor market and work environment.Hospitality TodayCompetition in the hospitality industry has escalated. No longer is it acceptable to merely satisfy the guest. Today, the key to guest loyalty and commitment is exceptional service and, when problems do occur, quick and precise recovery approaches. Whether visiting a quick-service restaurant or a five-star, five- diamond resort, guests bring expectations that must be met--and exceeded--for their return business to be ensured. Lifelong learning as an essential component in this competitive marketplace is no longer a buzzword but a business requirement.Today's Work ForceAt a time when guest demands are escalating, the hospitality work force is changing. No business can pretend that the employee of today has the same work values and expectations of decades ago. In fact, there is a type of unwritten, unspoken psychological contract between employers and employees of the twenty-first century. Employers provide learning opportunities and professional development in lieu of job security. Employees will remain with the organization as long as they are developing skills and meeting or exceeding their expectations for skill development. Employee motivation today is therefore tied to education, training, mentoring, and growth opportunities. According to Harold Weinstein, Chief Operating Officer of Caliper Management, an international psychological assessment and human resources consulting firm, Competencies are now seen as currencies. From the perspective of employees, competencies are assets they can trade for higher salaries." In essence, many workers are saying to companies: if you can't give me the security of working here for a lifetime, then give me the next best thing by helping me develop portable job skills:If the American work force has the training it wants, 12 percent will leave their current employer anyway. If they do not get the training, 41 percent will leave. If you have a company with 1,000 employees, that means employee turnover will cost the company $14.5 million per year. [endnote 1]In relation to the changing expectations of the American work force, corporations are increasingly bearing the educational needs of working adults. A survey by the Society for Human Resource Management showed that 94 percent of U.S. companies offer professional development and 85 percent offer educational assistance as benefits. Of companies with 5,000 or more employees, 98 percent offer professional development and 93 percent offer educational assistance.[endnote 2]Companies that offer professional development and educational assistance thus have a powerful recruiting tool to market to prospective employees as well as an important key to employee retention. In an industry that has traditionally suffered from high employee turnover, hospitality companies have increasingly realized the severe repercussions turnover has on guest service. With competition so keen in recruiting and retaining quality employees, training is no longer optional; it is a survival tool, and training in the hospitality organization has become a mainstream function of the human resources division.SeePhoto.Training and the Strategic PlanOne of your key roles as a trainer in a hospitality setting is to incorporate training into the organization's strategic plan. By so doing, training becomes a vital component in the success of the company. Training directors, whether on a corporate, regional, or property level, often have to adopt new roles in educating other managers of the necessity of training as an on-going, continual process. This may necessitate tracking the progress of employees and making clear connections between new skills and competencies and the positive effect on productivity and job performance. It may also necessitate taking on a marketing role in helping other managers see how a comprehensive strategic training plan helps in accomplishing organizational goals.Technological ChangesYou may also have to be the change agent for an organization by preparing for future business demands. With the challenging day-to-day demands of a fast-paced hospitality company, taking time to prepare for the future can be met with resistance. You, however, have to be at the forefront in stressing the "shorter shelf life" of knowledge; knowledge today will amount to only about 10 percent of what we will know in 10 years. As the U.S. economy has moved from manufacturing to service and brawn to brain, the challenge is for employees to work smarter through technological advances to meet ever-increasing customer demands. People who are used to being connected to the other side of the world in seconds via their PCs or hand-held computers expect to be quickly seated at their tables when entering restaurants. Businesspeople who book a conference in a New York City hotel expect the salesperson to have at his or her fingertips information concerning services, availability, amenities, business center capabilities, banquet menus, and so on for the hotel's sister property in Tokyo. CEOs who hop the globe from one luxury hotel to another expect each hotel to remember, from stay to stay, their personal preferences when it comes to hotel accommodations. For example, if a CEO prefers to sleep on foam pillows (because she has allergies) and wants cognac to be waiting in her room rather than fresh flowers (those allergies again), she expects the hotels she frequents to remember these preferences.Today's technology allows for all of these. What will tomorrow hold? Trainers often have to be the progressive consciousness of organizations in expanding these horizons and exploring new paradigms. Although we may not know the specifics of all new technologies, it is known thatlifelong learningbecomes paramount in preparing for such changes. The front desk agent who masters a front office computer program will have to learn a new one someday when the hotel upgrades its system. If room attendants are still carrying clipboards to record their progress in cleaning guestrooms, they will be carrying hand-held computers in the very near future.Training professionals in hospitality organizations may also have to lead their companies in using new training technology. The old method of telling the new employee to "follow Sue around for a few days to get the hang of things" is not consistently effective and does not typically meet the expectations of employees. Use of learning technologies such as CD-ROM, intranets, and the Internet is on the increase with more interactive, experiential training options available. Selecting the appropriate technology traverses a number of skills and knowledge competencies, including an understanding of the job tasks involved, the company's performance standards, the adult learning process, and characteristics of the employees who will be trained. The training director or manager, therefore, becomes an important source of information.SeePhoto.Creative TrainingAnother role of training is working with the management team to synergistically develop innovative training approaches. The variety of creative training opportunities is immense. For example: At the Ashley House, one of the employee training and development programs involves one employee each week staying at the hotel for a night as a guest. The employee then spends the rest of the week observing the various hotel departments. This helps the employee see the hotel through the eyes of a guest, and enables him or her to gain a greater appreciation for what staff members in other departments do to get their daily work done and make the hotel a success. In Walt Disney World's premier restaurants, dishwashers have an unusual start to their first day on the job. Their manager takes them into the restaurant and shows them a linen-covered table, beautifully set with fine dishes and crystal. Everything seems in place to impress the restaurant's discriminating guests-except for one problem: the dishes, glassware, and silverware are dirty. There are specks of food stuck to the eating utensils, there are thin streaks of leftover gravy and other food products still stuck to the plates, and there are faint lipstick smears on the crystal glasses. This is designed to give new dishwashers a chance to experience firsthand the negative emotions guests would feel if they sat down to a dirty place setting. No restaurant--especially not an elegant, high-check-average restaurant--can afford to greet guests with dirty dishes. The Boulders Resort in Colorado asks its managers to act as "cornerstone coaches" for their employees, training employees in the "10 Cornerstones" that tie into the mission of the resort. The Ritz-Carlton certifies its employees as they move up the hotel's career ladder and reach higher skill levels through in-house and other training.As seen in these examples, training efforts and programs can differ widely from one hospitality organization to another, depending on the mission of the organization, the staff members involved, and the resources available. All forms of job training have a common purpose: to change the way staff members behave. Training is designed to increase an employee's efficiency by fostering positive changes in the trainee's knowledge, skills, and/or aptitudes.Although training has been called the "aspirin of all industries," it is not the solution to all problems. A proficient training professional has to help guide the organization in distinguishing between outcomes that training efforts can affect and those results that would make training investments quite futile. For example, poor employee morale may possibly be linked to worker frustration because of inappropriate preparation for their jobs. Employees may be unprepared to use a new computer software program or deal with demanding, impatient guests. These, then, would be appropriate areas on which to focus training efforts. Low employee morale, however, may be linked to issues such as wages and benefits that are not competitive or work equipment and supplies that are in bad repair or short supply. These problems cannot be directly improved through training. A session on stress management for employees may indirectly help, but the cause of the problems would remain unresolved.Learning OrganizationsSuccessful training requires a corporate environment that encourages lifelong learning. Moving an organization toward a culture where training is an essential, continuous process for all hierarchical levels is a long-term goal with strategic steps that eventually result in the organization becoming a "learning organization." This phrase, coined by Peter Senge, describes his vision of "an organization where people continuously expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together."[endnote 3]Several hallmarks define a learning organization. The learning organization: Thinks of learning as synonymous with working Becomes smarter over time Sees learning as the best source of competitive advantage Thrives on change and anticipates and prepares for future success by increasing the staff's skills and knowledge Has a nurturing organizational environment that taps into the collective wisdom of the entire work force Has a working environment where people constantly are learning and applying their knowledge to help the organization continuously improveNew paradigms of organizational behavior have emerged as we proceed into the twenty-first century, reinforcing the importance of the learning organization. Some of these organizational changes include: An emphasis on partnerships and alliances Inspirational leadership as compared to autocratic styles Global versus domestic markets A competitive advantage based on time and not just cost Technological tools that support collaboration A diverse work force Cross-functional work processes and work teams Corporations striving to be identified as "employers of choice"These organizational changes have brought about changing competencies for employees, including those in hospitality. Employers want employees who are capable of "learning to learn." Communication, collaboration, creative thinking, and problem-solving abilities are valued for the hospitality organization striving to successfully compete in this changing arena. Literacy has expanded into new dimensions, encompassing not just reading and writing but technological literacy and global business literacy. The training function becomes a vehicle for empowering the organization to compete effectively.Chapter 1 - Competency 2:Explain how the principles of adult learning apply to training and development in the hospitality industry, and describe how trainers can promote training within their organizations.Adult Learning PrinciplesA hospitality organization's trainers can play an important role in educating managers and others involved in departmental training about the unique aspects of training adults. The study of adult learning, or adragogy, is quite extensive. Trainers in an organizational setting must transform this theoretical knowledge into real-life applications.For example, leading adult-learner theorist Malcolm Knowles emphasized that self-motivation is the best stimulus for learning, with "need to know" and "readiness to learn" being critical to the success ofadult learningprograms. Working with a restaurant manager deciding how best to introduce a new wine menu to her staff, you can bring these principles to life. You may consult with her to determine how to introduce the training, or even market the training days before conducting the sessions. Even if the training is mandatory, a receptive, attentive group will certainly make the process more successful. You might suggest that the manager consider introducing the concept ofWIFMto the group of employees, a very effective training technique. WIFM, you tell the restaurant manager, means, "What's in It For Me?" Addressing this unspoken question with the employee group may maximize the "tuning in" process. With a new wine menu could come a number of benefits to staff members. Becoming proficient with the types of wines offered, being able to suggest food-wine pairings, and describing the wines using rich and descriptive adjectives has paybacks. One of the most obvious to the employee, and ultimately to the restaurant operation, is an increase in the average guest check: more in tips and more in profits. The importance of internal factors should not be overlooked either. Enhanced self-esteem and the feeling of accomplishment are paramount motivators in learning.Adult learners need training that is life-, task-, or problem-centered. The practical aspects of being able to immediately apply the new knowledge, skills, or aptitudes will reinforce the entire learning process. For example, you may realize when developing a supervisory training process for recently promoted golf club employees that past programs have been delivered predominately through lecture. Knowing that participation and involvement in the training sessions are key, you redesign the format to include interactive training techniques such as role plays, case studies, and games. In addition, you give the trainees theopportunity to discuss applications of the supervisory principles emphasized in the experiential learning exercises. You then arrange groups around tables for collaboration and teamwork rather than the more formal and traditional classroom set-up. You start each session asking trainees to reflect on the application of the new skills and ways to refine and modify them for effective use. As the club's general manager questions why the training is taking more hours and cannot be covered in a three-hour session, you may have to explain the principles of adult learning in concise, operational terms as they relate tothis business commitment and then enumerate the expected returns.Promoting TrainingAs advocates for training, training managers and directors must maximize the level of support for and involvement in training throughout the organization, starting with senior level management. Some experts even refer to the CEO role as more appropriately being called the CLO--Chief Learning Officer. As the training professional, you may have to initiate and facilitate messages of support. The training manager of a large urban convention center makes sure that other members of the management team understand the need for the upcoming guest service training program, and that they have demonstrated the importance of the training to their department managers by, for example, persuading the managers to attend side-by-side with line-level employees.Fun, creative marketing approaches from the training department certainly help in heightening the interest level among employees as well as the recognition given at the end of such programs, such as photos in the employee newsletter, Web site coverage, and official certificates of completion. The day of the first training session, the training manager stops by the general manager's office to remind him that "kickoff" time is in thirty minutes. A few sincere words from a general manager, president, CEO, or owner of a business, showing an understanding of the program and the expected benefits, can definitely help establish the appropriate learning environment for employees and reinforce the culture of the business as a learning organization.Chapter 1 - Competency 3:Explain how training and development activities are affected by issues such as scheduling, negligent training, cultural diversity, trainee disabilities, and globalization.Training Issues of the Twenty-First CenturyAs the competitive environment of hospitality businesses escalates, quality issues and how a business can gain the competitive edge through guest service become even more vital. The hospitality organization that consistently delivers quality-based service typically understands the paramount role of continuous employee training and development. The particular challenges that characterize the hospitality industry must be fully understood, however, by trainers trying to deal with some of the typical obstructions to seamless, continuous, and effective training. Most of these obstructions are not new to the industry but are actually age-old excuses that have been present for decades.The scheduling of training has often been problematic in hospitality companies, particularly those that operate 7 days per week, 24 hours a day. Requiring a third-shift employee to come in during the midday hours for a seminar interferes with sleep schedules and off-work activities. Many organizations are not equipped to provide supplemental training in the middle of the night. Another complication of the always-open environment is how to creatively schedule training time around work time to coincide with slower hours and days. Often the scheduling complexities are intensified because of budgeted payroll dollars and not being able to spend the money for training during off-season or slower times. Very real payroll issues can also come into play in hiring new employees and not allowing sufficient training time before business picks up or the high season begins.An organization cannot forfeit training to these operational concerns. The training function of a hospitality business should not be considered a nuisance or interference to business, but part of the team and the business, providing an essential element to the company's success. Communication and interaction between the organization's training professionals and all facets of the operation are vital. For example, the hotel's training director has to be involved in discussing scheduling challenges and devising creative, flexible approaches to address them. The training department can provide valuable feedback regarding hiring decisions and how well new employees are learning job tasks. This feedback can be essential in improving and fine-tuning employee selection processes. The importance of an open system of communication and feedback in which the training department is an active and necessary player can reinforce the organization's drive toward quality results.Negligent TrainingAs with many aspects of operating a business, there are legal ramifications that reinforce the importance of training as a consistent, effective process throughout the organization. The concept of "negligent training" became an important issue in litigation in the 1990s, and there are no signs that it will diminish in this new century. Negligent training is typically applied in cases where customers or guests are injured because of the behavior of employees. The injury might involve a physical injury, an emotional one, or even a psychological one. Plaintiffs aren't necessarily guests in all cases either; they could be an employee, a purveyor, or a third party visiting the business.Exhibit 1defines negligent training and how to avoid it.

Documentation of training completed by employees is important evidence in a lawsuit. In shows that the employer took a certain level of "reasonable care" in trying to prevent problems such as sexual harassment, violation of safety/fire procedures, acts of discrimination, irresponsible alcohol service, or unsanitary food preparation. Although training is no guarantee that employer liability will be completely eliminated, the proof of on-going, thorough training has the potential to reflect positively on the employer's situation.Negligent training can also involve cases in which employees allege they have been harmed. The liability related to this legal doctrine can be tied to the negligent design of a training program, the delivery of a program, vendor selection, trainer selection, or the supervision provided during the training process. The liability could encompass individual trainers as well as owners, managers, outside contractors, and vendors. State laws can vary regarding employer liability in such cases, and it is important for businesses to understand the environment of their potential legal risks. In many states, liability occurs only if it is established that the employee was injured as a direct result of a lack of training. It is also recommended that employers seek legal counsel, as a form of prevention, in making sure that any questionable or potentially problematic training and development practices are evaluated.DiversityThe changing business environment involving a more complex work force also reinforces the importance of training. While some companies paid lip service in addressingdiversityin the work force in the 1990s, the twenty-first century brings a higher level of expectation for success. No longer can companies in the United States predict that the work placewillchange; it has changed and will become increasingly more diverse. This fact certainly affects training and development approaches in hospitality organizations.Diversity is multi-faceted, incorporating differences in many areas, such as culture, gender, sexual orientation, age, socioeconomic background, literacy levels, learning styles, and aptitudes. Regarding cultural diversity, for example, in 1995 Hispanics represented 10.2 percent of the civilian labor force. By 2005, they are expected to represent 12.6 percent. Asian-Americans will move from 3.3 percent to a projected 4.4 percent by 2005. The African-American population in the work force will increase only slightly, from 12 percent in 1995 to 12.4 percent in 2005. Whereas Caucasians made up 73.6 percent of those working in 1995, this percentage will drop to 69.9 percent in 2005.More women are working than ever before and this percentage is also projected to increase. By 2005, 47.8 percent of the U.S. work force will be female as compared to 46 percent in 1994. The U.S. working population is also getting older. The median age of the work force was 34.7 years old in 1979; in 1995, the median age had risen to 37.8 years, and by 2005 it is projected to hit 40.5 years. The number of workers with disabilities has also grown considerably.Exhibit 2depicts a scenario illustrating diversity issues within a large, urban convention hotel.

A fundamental element in delivering effective training and development programs to a diverse work force is having the awareness, willingness, and adaptability to use different training approaches with individual employees. Even learning styles require some adaptation in addressing the uniqueness of each employee. Since it can be assumed that the trainees within any group will have diverse needs and learning preferences, training development and design should include a variety of techniques and methods. For example, training sessions should strive to reach visual,auditory, andkinesthetic learnersby incorporating visual presentations in the way of diagrams, presentation software slides, or illustrations. Trainers can address the needs of auditory learners by recording training sessions, talking through training content, and providing opportunities to discuss the training material with others. Kinesthetic learners, on the other hand, need time to actually practice and be able to "touch" the material being covered.SeePhoto.

Addressing other individual needs of trainees may be more complex. For example, employees with disabilities can encompass a broad range of physical and mental conditions. The American with Disabilities Act (ADA) mandates equal access to company-sponsored training and development for employees. According to the ADA, the employer has a legal obligation to accommodate employees (incoming as well as existing) who have disabilities and require modifications for training to be accessible and effective. Since training is a vehicle for satisfactory job performance, as well as possible career advancement, equal access to company-sponsored training is part of equal employment opportunity.The American Society for Training and Development recommends that organizations conduct, at least annually, a review of training processes to evaluate accessibility and compliance with the ADA. It is recommended that the review focus on the following: General policies, procedures, and practices Participant assessment tools Management's awareness of ADA, disabilities, etc. Trainers' awareness of ADA, disabilities, etc. Specific curricula Skill evaluation tools Marketing and outreach Training improvements Recordkeeping Course planning Specialized courses for people with disabilities Knowledge of accommodation options Knowledge of internal and external support resources Climate for accessibility and accommodationsTrainers should implement a prioritization system after such a review, in which training issues are categorized as follows: issues needing immediate attention, those which should be addressed within a longer, but stipulated time period; and issues in which the organization should continue with already successful efforts.[endnote 4]In analyzing accommodations and accessibility of training for employees, remember that numerous conditions legally classified as disabilities are not evident to the eye. For example, between 10 and 15 percent of the population with normal or above-average intelligence have some type of learning disability of a sufficient magnitude to interfere with normal life functions. It is estimated that possibly 70 to 80 percent of employees attending training have varying degrees of a learning disability that, although not interfering with normal life functions, makes learning under certain circumstances difficult. Learning disabilities can manifest themselves in numerous ways, including visual, auditory, muscular, processing, social, and attention. Specific examples include: Visual--an inability to place concepts in a written format Auditory--an inability to combine a variety of tones into meaningful words or to combine sounds into spoken language Muscular--failure to properly use fine or gross motor skills Processing--inability to process and store information in short-term memory Social--inability to read body language, resulting in inappropriate social conduct Attention--attention problems can range from hyperactivity to drowsinessThe chapter appendix provides examples of how training can be adapted for employees with disabilities.GlobalizationThe concept of overall diversity is also amplified as hospitality businesses expand around the globe. Not only does an organization have a responsibility to address the training needs of domestic employees but also the training needs of international employees. One of the most challenging aspects for businesses as they expand outside their country of origin is adapting to new cultures and customs that directly affect work behavior.Although the steps in developing training processes are the same for international settings as for training based in the United States, the steps must be "acculturized" or made user-friendly for the particular target culture. Cultural differences can make it more difficult to accomplish training objectives. The acculturized training may result in a very different look and approach as compared to its U.S. counterpart, but as long as the information is delivered effectively and the training objectives are accomplished, the goal has been achieved.Modifying the steps involved in the training process to adapt to global differences begins with the initial needs assessment conducted to identify training priorities.[endnote 5]Some of the cultural differences that may be encountered at this stage include: In some cultures, it is difficult for an employee to admit to certain needs regarding gaps or possible weak areas of performance. In these situations, the trainee may risk "losing face," particularly if the admission has to be made in front of others. The trainer may be expected to be the all-knowing expert in certain cultures and asking for input, as with a needs assessment, may be perceived as incompetence on the trainer's part. In cultures placing a high value on politeness, employees may try to second-guess what the trainer wants to hear as answers to needs-assessment items. Obtaining valid feedback can be a problem. Working with individuals in the organization who are very familiar with the cultures represented among the employees is often helpful in addressing cultural differences at the needs-assessment stage. Getting direct, clear feedback from employees' managers is also helpful at this stage in countering less than complete employee participation. Cultural differences may come into play in setting training objectives. Some of the differences at this stage relate to the beliefs of certain cultures that only a divine being would be able to know what trainees will be able to do after the training sessions. In such cases, the trainer would be considered, at best, presumptuous and possibly disrespectful. In other cases, in which employees believe strongly in being foreordained to accomplish--or not accomplish-- something, the trainer's role is really quite negligible. In other cultures, training objectives may be perceived as threatening, because not achieving the objectives would be an indication of failure on the part of the employee. In addition, the trainer may find that trainees believe the building of interpersonal relationships is as important or even more important that the achievement of learning new skills or knowledge. Trainers in global settings should also be aware of governmental standards and testing requirements that could affect training activities. The regulations of some governments favor formal credentials and, in such locations, employees tend to place a priority on such outcomes. The design of the training curriculum, on a global basis, should address multiple learning styles and preferences. Whereas Americans and Northern Europeans tend to prefer inductive-task or problem-centered learning approaches, this is not the preference in other parts of the world. A predominant preference in some other cultures is deductive and topic-centered reasoning. Therefore, trainees may have difficulty in generalizing from specifics and engaging in experiential-based learning. A more topic centered approach tends to be more appropriate for deductive learning. Timing is a key issue when designing training programs, particularly those delivered to different or multiple cultures. Sufficient time should be allowed for discussion of the material as well as for socializing and building relationships--aspects that tend to be very important in some cultures. More time will be required for bilingual programs as well as for certain team activities. Cultures that place a high priority on harmony and agreement may take considerably longer with group activities because of the need to reach a consensus. Trainers should be particularly aware of cultural differences in selecting training methodologies. Self-directed learning approaches for some cultures can be problematic. Participants from Asian and Arab cultures, for example, prefer to learn by rote, including observation of the instructor, versus learning-by- doing approaches. Trainer-centered methods tend to be more appropriate for cultures that consider the role of teacher to be one of the all-knowing expert. More egalitarian cultures more readily accept the participative, experiential techniques. In cultures where individuality is minimized, role-playing or other techniques involving personal risk-taking in which an employee can tand out are not good fits. Situations involving a reversal of roles, such as the employee role-playing the manager, tend to be even more inappropriate. Games may present problems as a training method in some cultures. A number of Asian countries make very definite distinctions between game-playing and learning, and mixing the two creates cultural contradictions. The recommended participative training techniques for cultures in which experiential training may not be preferred include small-group discussions and case studies. In such cultures, groupings of employees should include those of similar status and age. It is recommended that representatives of these groups report their conclusions back to the group as a whole. In this way, the individuality of the work is minimized and team effort is shown. It is noted, however, that in Arab countries use of case studies may be ineffective because of cultural norms encouraging only comments from the leader or manager of a group. Even in European countries, cultural differences in training preferences exist. For example, Germans prefer orderly, systematic, and detailed approaches. In France, the preference is toward more active, creative activities. While a case study may be very effective in Germany, brainstorming may be a more fitting approach in France. One of the risks of using training materials from the United States in other countries is giving the impression that the American way is the only or best way. Trainers should review and evaluate all training materials and techniques to ensure they maximize benefits for the particular culture involved.

Chapter 1 - Competency 4:Identify the duties and responsibilities of training positions at the department, property, and regional/ corporate levels.Career Options in Hospitality TrainingThere are numerous and varied career opportunities in the hospitality training profession. Although it would be difficult to compile a comprehensive list of all the hats that hospitality trainers wear, it is possible to briefly describe some of the main areas, along with key selection criteria.Exhibit 3shows median compensation levels for three levels of trainers. We begin with the department level and progress to the corporate-level training professional and certain specialized fields. Keep in mind, though, that for many hospitality trainers, training is only one aspect of their job. They can, therefore, be found in all departments, at all levels, and in all types of hospitality organizations.Department-Level TrainersThe trainer on the department level typically holds another position in addition to having training responsibilities for new employees. Departmental trainers may be hourly, non-supervisory employees, hourly supervisors, or department managers. The experience that an individual gains in training on the departmental level can be pivotal in numerous ways: the departmental trainer has a major effect on the new employee's success, morale, and impressions of the property overall. Not only is the trainer delivering technical job-skill information but also important knowledge relating to the socialization process of the organization. For example, if lateral service is said to be part of the mission of the property but the departmental trainer does not display a team spirit or willingness to help fellow employees throughout the training process, the new employee could easily surmise that a collegial working relationship, in reality, is not important. If, on the other hand, the trainer consistently models his or her willingness to help other employees and shows a service-orientation to fellow workers, the new employee will quickly gain an understanding of this important aspect. Another pivotal aspect for the department trainer is to prepare for personal career opportunities for other positions in the training profession. Many property and regional trainers began their career as a department trainer who excelled in teaching skills and transferring learning.A training director or manager should base the selection of department trainers on designated criteria, not just on the person who is available, has the most seniority, or is just willing to do the job. While the departmental trainers should have an excellent working knowledge of job skills and procedures, there are cases where outstanding employees are not the best trainers because they lack the interest, flexibility, patience, or other important characteristics needed for effective training. Listed below are the qualities of effective trainers, reinforcing the importance of proper selection on the departmental level.Departmental trainers should: Know and be able to perform the job skills and procedures Understand the mission of the company and reflect the organizational culture in their actions and words Understand the qualities of effective employees and model/train those qualities Have a personal commitment to excellence in all areas of performance Earn the respect of trainees and other employees Show respect for other individuals and enjoy working with different types of people Have excellent communication skills Be flexible Display a consistently positive attitude Have the ability to make decisions and solve routine problems Show enthusiasm for their job, the department, and the organization Have self-confidence Display that they enjoy training Be able to encourage trainees to think about how the training applies to their jobs Have the ability to persuade trainees to set goals for themselves in training Be accessible and open and invite trainees, through their words and actions, to ask questions Encourage trainees to find better ways of doing job tasks Have excellent active listening skills Understand and display the importance of recognizing and praising even the smallest successes of trainees Encourage and support trainees Share their experiences and even their mistakes with the trainees Have a good sense of humor and use it as a training tool Spend the time necessary to properly train employees Reward employees for training achievementsAlthough departmental trainers may be involved in ongoing training for more experienced employees, this level of training is typically handled by other people, such as the department manager, a property-level trainer, or outside sources.Property-Level TrainersMany large hospitality organizations have unit- or property-level trainers to coordinate and facilitate training activities throughout the hotel, restaurant, club, or venue. Property trainers, such as directors of training or training managers, should have most of the qualifications of the department-level trainers because they at times do personally conduct some training programs. They also work in establishing a consistent training process throughout the particular unit or property. Many training managers and directors enter these jobs from operations or such support areas as human resources, so their working knowledge of various job positions and the organization overall is extensive. If the training manager or director was newly hired into the organization in that role, it is strongly recommended that he or she receive some type of indoctrination to job positions, specific responsibilities andcompetenciesinvolved in those jobs, operational processes and, of course, the organization's mission, goals, and managerial philosophy. This foundation will be vital in formulating a strategic training plan to integrate with the company's overall strategic business plan. This individual should have a broad understanding of the property or unit to comprehend the multi-dimensionality of planning and coordinating based on training needs in different positions departments, organizational levels, and with different shifts of employees.Exhibit 4provides a sample job description for a property trainer.

Competencies that are important for this position include:[endnote 6] Industry awareness. Understanding not only the organization but the industry as a whole, as well as industries from which to learn and benchmark training and development activities. Leadership skills. Influencing others positively to achieve desired work results. Interpersonal relationship skills. Working with others effectively requires an awareness and understanding of multicultural perspectives and diversity issues. Technological awareness and understanding. Understanding different types of software and hardware, and their appropriate application with varied target audiences, is a skill growing in importance. Problem-solving skills. Detecting performance gaps and working with others to minimize and avoid these gaps between actual and ideal performance in the present and future. Systems thinking and understanding. Understanding the many dimensions of the organization and applying that information to improve human performance through training and development processes. Performance understanding. Understanding standards of performance, including the differentiation between activities and results, implications, outcomes, and consequences. Knowledge of appropriate interventions. Able to improve employee performance by using those interventions that fit best with certain employee characteristics and learning styles. Business understanding. A good overall understanding of business functions, including what affects profitability and key business. Organization understanding. Understanding the dynamic aspects of organizational development and also having a clear awareness of how the training manager or director's organization operates. This includes possessing knowledge of such issues as power and authority in decision-making, formal and informal organization leaders, and the culture of the company--including particular characteristics of the location involved, formal mission, and level of operational consistency in supporting the mission, as well as knowing the short-term and long-term goals of the organization. Negotiation/contracting skills. Particularly relevant in arranging, overseeing, and evaluating vendors or outsourced training and development activities. Buy-in/advocacy skills. The ability to build ownership and support for ongoing continual improvement through training and development processes. Coping skills. The ability to deal with ambiguity, changing work environments, the need for flexibility, and stress management. Ability to see the "big picture."Being able to see the organization as a whole now and what is envisioned in the future. Consulting skills. Able to serve as an "internal consultant" having an understanding of organizational needs, desired outcomes, and ways that the results can be achieved efficiently and effectively for the stakeholders involved.Regional and Corporate TrainersTraining professionals may also be found on the regional and corporate levels, particularly for the major hotel chains, restaurant chains, and other major food service companies, large amusement and theme park operations, casinos, and airline and cruise ship companies.Similar competencies to those of the property-level training professional are needed on the regional and corporate levels but involving an even wider, more diverse, and complex perspective. For example, a corporate training director needs to have the big picture of the entire company versus that of just one location. This broad perspective often includes domestic and international properties, existing and upcoming locations, union and non-union operations, and properties having varying levels of profitability and performance results. The regional director, on a smaller scale, would likewise have more than one property or location involved in his or her territory.Often, particularly on the corporate level, the training professional oversees rograms and processes that must be standardized or kept consistent in training from location to location. This person may also be in the decision-making role of determining what outsourcing will be done and whether supplemental training activities will be conducted by consultants and other vendors external to the organization. This person also may be instrumental in evaluating training activities on the property level resulting in a tie to some type of bonus or reward system. In leading hospitality companies, the corporate training professional is often on the vice president or comparable level.Hospitality training professionals on the property, regional, and corporate levels reflect changes in a progressive and newer world of training. Alison Rossett, professor of education technology at San Diego State University, described the changing world of training in this way:No longer defined primarily as a stand-up instructor in a classroom, the training and development professional becomes responsible for assessing, designing, developing, and brokering larger performance systems that often include training but are by no means limited to it. [endnote 7]In all of the training positions described, from departmental trainer to corporate vice president of training, an essential component of job effectiveness is to consistently be an advocate for employee training and development. This advocacy role, of course, is more predominant as one goes higher in the organization. The role, while relying on strong communication, negotiation, and marketing skills, is based mostly on the ability to demonstrate how training outcomes positively affect the organization and ultimately relate, directly or indirectly, to greater profitability.Other Training ProfessionalsThere are also many specialized training roles in hospitality. Another training position, more often found in larger hospitality organizations on the corporate level, is that of the instructional systems designer. This position involves developing and designing learning materials and events. Corporations sometimes feel that customized training materials and programs better reflect their particular culture and address more directly the company's organizational needs. The position of instructional systems designer requires a number of competencies including: A foundation in learning theory, including adult learning principles Content expertise, including a thorough working knowledge of job skills and performance expectations for varied positions Effective communication skills Creativity A comprehensive knowledge of and skills in using a variety of instructional methods The ability to match the instructional methods that best fit the training objectives with the employees that will be involved Skills in using different types of instructional media, along with the ability to determine the type of instructional media that best fits training objectives and the targeted employee audiences Skills in assessing the extent to which learning objectives are met, and skills in modifying training programs if learning objectives are not metThe Web-based media developer is a growing training specialization as more companies are using on-line training options. Distance learning coordinators/ directors work with the developers in delivering this training option to employees. The roles of the technical trainer and e-trainer are projected to grow in upcoming years, as more companies use on-line training opportunities. Trainers will increasingly look to technology as they are challenged with creating faster and cheaper training solutions.Another growing area in hospitality training is the role of the consultant. As hospitality organizations struggle with the most economic and cost-effective ways of meeting their training needs, they often turn to outside consultants to perform many training functions. These consultants may help with needs assessments, evaluations, training design, instructional delivery, or material development. Many of these consultants have hospitality backgrounds and specialize in meeting the specific needs of this high service, fast-paced industry.

Chapter 2 - Competency 1:Explain how training is an investment in the organization.Training and Development as an InvestmentThere is a saying that "every organization pays for training whether it has a program or not." An organization can recognize the value of training by providing a systematic approach to training delivery, thereby reaping its benefits. Or it can choose to ignore training and "pay" for training as its guests receive poor service, poor products, or poor quality, and eventually choose to go elsewhere.Training has been hard hit as a department in the past few decades. In many cases, training departments were eliminated, victims of corporate downsizing. In other cases, training departments were outsourced or re-engineered into departmental functions. Even today, many organizations fail to include training as a line item in their operational budgets--especially in an environment of corporate buyouts and takeovers where an organization is eager to make itself look as strong on paper as possible.Survival of many training and development departments hinges on their ability to definitively calculate the value of training. Most leaders of hospitality organizations are bottom line oriented. Unless a good or service contributes directly to the bottom line, it is often eliminated--and this includes the training function.A strong incentive exists to create a single method of measuring the cost of training. However, since a single way to conduct training doesn't exist, an accurate single formula cannot be created to determine its cost. The analysis of training and development costs is complex and dynamic.Peter Drucker has stated the "only meaningful economic resource" is knowledge. An organization's training and development department disseminates appropriate knowledge to its employees. Getting the job done right the first time is always cheaper than doing it over. The challenge you have is to put a dollar amount onhowmuch cheaper it is.It is estimated that $55 billion or more is spent on training in the United States each year. But the training department, like the marketing and research functions in an organization, has a difficult time showing an immediate effect on the bottom line. Historically, U.S. organizations have tended to reduce their training budgets in response to falling profits. In numerous other countries, owever, the custom is to increase training and development budgets when profits begin to fall. The premise is that well-trained employees will help the organization thrive and ultimately produce increased profits.Numerous studies have shown that training affects the overall financial well- being of the organization, that monies invested in training will have a positive effect on the organization, ultimately increasing profitability. Likewise, when the training needs of an operation are not adequately funded, it will have a negative effect on the bottom line.Why Is Training an Investment?The hospitality industry's employment base is the largest of any industry in the private sector in the United States. It surpasses the agriculture sector and the auto, electronics, steel, and textile industries combined in number of people employed.[endnote1]National unemployment continues to remain low, with less than 4 percent of the working population unemployed in 2000 climbing slightly to 4.8 percent in 2001.[endnote 2]As a result, the managers of hospitality operations find hiring sufficient staff a constant challenge, even when the positions available require little or no prior experience.Some of the many factors contributing to the labor shortage in the hospitality industry are: Demographics Competition from better paying industries Low perception of service culture Perceived lack of education needed Perceived lack of advancement opportunitiesSo what does the labor shortage mean for your training department? The current environment is one of fierce competition for employees. Likewise, the environment is one of fierce competition for guests. Hospitality thrives on its serviceability--people serving other people. It is vital to the long-term success of a hospitality business to have highly trained employees.The hospitality manager's job requires that he or she do many things at once. An effective training and development department can enhance the manager's productivity by helping to provide a staff that is well trained. Moreover, your training and development of the manager should be ongoing to demonstrate support of a learning atmosphere.Training and development should be strategic, long-term, goal-oriented, supportive of a better way of learning, conducive to workplace innovation, and focused on guest service thinking and behavior.Training is an investment in people. Many business segments have long since developed industry-wide return-on-investment measurements. The hospitality industry, as a whole, is just beginning to recognize the value of benchmarking training and its return on investment. Historically, hospitality managers have emphasized measuring financial assets, food costs, and labor costs. But the broader focus of today's management includes accounting of human assets and their value in a high-service industry.Return on Individual: The Other ROI, Human CapitalHospitality is a people business, yet while we place dollar values on buildings, land, food, inventories, and equipment, we have difficulty assigning a dollar value to our human capital.Human capitalhas often been called the "soft" side of the business. Most organizations do not measure their human capital, as many CEOs and industry leaders continue to believe it cannot be expressed in dollars.You must show that training has a positive return on investment for the organization, that training does improve the bottom line of a company. However, there are many valuable types of training that you cannot easily measure in dollars.Employee performance improves when companies invest in systematic training programs. In 1996, the United Nations Human Development Report stated "the key to national economic growth is investment in education." The United Nations found that by increasing employee education by just one grade level, the gross domestic product increased by nine percent.[endnote 3]While these advances are measured on a national scale, similar advances can be realized in your organization.Gary Becker, author ofHuman Capital, created "the human capital theory."[endnote 4]This theory suggests that employees, businesses, and society receive a direct economic benefit from investment in people. He draws an analogy between the personal education of an industry CEO and the collective knowledge of a company's employees. Clearly the CEO has gained economically and personally by his or her personal education. Becker estimates that the return on investment each CEO has gained from his or her personal education is between 12.5 percent and 25 percent.In like manner, if an organization can harness the sum total of its employees' skills, training, education, experience, life skills, knowledge, and intuition, then the aggregate output translates into real and measurable value to the organization. Developing the human capital in your organization will increase its ability to adapt to environmental changes and become a learning organization.Edward Gordon, in his bookSkill Wars, cites an example of an innovative company that devised a way to measure human capital and use the measurement to demonstrate its effect on reduced turnover, increased retention, the corporate culture, and bottom-line earnings:Scandia A F S, a Scandinavian-based insurance company, is a recognized leader in measuring the value of human resource contributions. Leif Edvinsson and Michael S. Malone inIntellectual Capital(Harper Business, 1997) discussed how in May 1995 Scandia released the first public human capital annual report, as a supplement to their financial report. It included how levels of employees' education and training influenced turnover and retention, the corporate culture, and bottom-line earnings.Edvinsson and Malone wrote, "The rise of Intellectual Capital is inevitable given the irresistible historical and technological forces, not to mention the investment flows that are sweeping across the modern world and driving us toward a knowledge economy."[endnote 5]There is a familiar saying: "If you want something to improve, you measure it." By measuring human capital, you can better validate training's return on investment as performance improves. As a trainer, you will need to constantly substantiate the value of training to upper management.The challenge for you is to develop a systematic approach to quantifying human capital. Human capital worksheets designed by experts in the field to guide this process are available on the market. The concept is to quantify increases in productivity or profits that have resulted from the trainee's improved performance. You must ask, "What does this employee do better since he or she has completed the training?" Measuring the benefits of the training and extrapolating it throughout the organization will confirm training's ROI in human capital. SeePhotoAbsenteeismAbsenteeism is a symptom of larger operational problems. Absenteeism is frequently due to: Management's insensitivity Management's lack of response to the critical needs of employees Low morale, prompting lack of motivation Low morale, causing increased levels of stress Low morale, causing increased accidents and illnessAppropriate training can assist in reducing absenteeism. During orientation, all employees should learn the importance of their jobs to the whole operation. When employees see themselves as part of a team, their self-worth is enhanced and their desire to be on the job grows.Employees should be shown that they are missed when they are absent. If an individual realizes his or her absence will affect the team, that person is less likely to miss work. However, excessive regular absenteeism should lead to dismissal. The longer an abusive employee is allowed to stay, the greater damage he or she does to the team. Any employee who chooses to not develop skills, chooses to not develop a team attitude, or is careless about coming to work should not be allowed to continue employment.TurnoverTurnovercan be defined as the entire cycle of losing employees and the process of replacing them. It includes an accounting of each time a position is vacated, either by the employee quitting or being otherwise terminated; and measures the relationships of employees to an organization as they leave, regardless of reason. SeePhotoThe term turnover is defined by Price as "crude turnover rate... the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period."[endnote 6]The hospitality industry's reported national annual turnover rates range from 154 percent[endnote 7]to 240 percent[endnote 8], more than 10 to 20 times that of U.S. businesses in general.[endnote 9]Numerous studies have been conducted on employee turnover within the industry segments. The annual turnover rates by industry segment according to these sources are:Hotels60 to 240 percent

Restaurants100 to 300 percent

Clubs75 percent

Retail grocery35 percent

All U.S. businesses12 percent

Usually the first and second highest-rated reasons for turnover center on the organization's leadership, specifically citing communication and quality of supervision or management. Quality of supervision and communication are critical attributes of any hierarchical structure and can be improved with effective training. Employees have a strong need to be informed. Businesses with strong communication systems enjoy lower staff turnover.Other reasons for high turnover point directly to employee training, specifically lack of clear-cut responsibility and absence of direction for the employee and the company. Employee training is the most useful tool to fill these voids. On-the-job knowledge is a critical variable in building employee comfort, performance, satisfaction, and ultimately the desire to stay with the company.Training reduces turnover by providing employees with: Increased job satisfaction Involvement in corporate culture Involvement in decision making Information about their jobs and the organization Organizational stability Predictable work environmentsThere are many different ways to measure the costs of turnover.Exhibit 1explains how to calculate your property's turnover rate by using employer W-2 forms. The most basic method of calculating turnover cost is by measuring only those costs associated with filling the vacated position. In this scenario, turnover costs per employee are about $267.39.[endnote 10]Other studies, such as that of the National Restaurant Association, include such intangibles as lost productivity, lost sales, and management's time. Using these measures, the estimated turnover costs of an hourly hospitality employee are $3,000 to $10, 000[endnote 11]each or an average of $6,500. The American Hotel & Lodging Foundation estimates turnover costs per manager to be $50,000. Exhibit 2can help you calculate your turnover costs for the most recent year. SeePhotoTurnover costs are commonly separated into three categories:separation costs,replacement costs, andtraining costs. Separation costs include those of maintaining files, conducting exit interviews, separation pay, unemployment taxes, and the termination of benefits. Replacement costs include those incurred while conducting searches, interviews, and background checks, buying new uniforms, covering waste due to productivity loss, and money spent on the interviewing process. Training costs include those monies spent on orientation, printed materials, trainer wages, and those monies lost due to reduced productivity of the trainee and the trainer.Using the relatively low annual turnover rate of 154 percent, coupled with the conservative turnover costs of $267.39, the turnover costs for the hospitality industry employment base exceed $3.7 billion. If industry growth projections are correct, these costs will continue to rise dramatically unless action is taken to reverse this trend and reduce turnover.Exhibit 3gives an example of how turnover can affect the financial performances of a single property. Traditionally, each operation has certain positions that turn over more frequently than others. Although we calculate turnover for the department or company as a whole, it is important to identify positions where turnover is higher than average. Positions that typically turn over at a higher rate are bus person, room attendant, dishwasher, valet, and wait staff. Depending on the needs of your operation, you may choose to focus specific training on individuals in those positions.Decide at what point money is better spent on higher wages for these positions or on repeated orientation and training of new hires as they pass through. For example, would it be better for the organization to upgrade the dishwasher position, which pays $6.50 an hour, yet turns over every two to three months, to a $8- to $10-an-hour position, where an individual may stay employed for years?Much training literature states that increased training promotes a high degree of job satisfaction, which in turn leads to a higherretentionrate. It also logically follows that lower turnover of staff is strongly correlated to high guest returns and investor interest. Managers who train their staffs enjoy a lower turnover, and in turn, the satisfied employee is caring for guests professionally, so they want to return.RecruitmentThe U.S. Census Bureau has projected the hospitality industry will need 20 millionmoreworkers than it currently has by the year 2006. Our industry enjoys the unique position of having the highest growth rate of all industries in this decade.This brings with it the need for human resource professionals or operational unit managers to be trained to hire more effectively. The industry has survived for years being a tough work environment because there was an abundance of applicants. Now the paradigm has shifted. There are no longer 10 to 20 or 100 applicants for each position. It is no longer uncommon to see permanent "Help Wanted" signs in front of fast food establishments.As the trainer, you can contribute to the recruitment process by encouraging managers to hire people who are likely to succeed in the position. You can examine each position in your company and provide the manager with a list of the skills, knowledge, experience, and language needed to fulfill the position requirements. By working closely with the hiring managers, you can develop training that promotes job satisfaction. This team approach will lead to better retention and improved recruitment results.Recruiting is an expensive process. It is highly labor intensive, and can consume 30 percent to 50 percent of a manager's day.Specific costs of recruitment are: Advertising Management's time in selection Application forms Testing Interviewing Reference checks Management's time in hiring decisions Maintaining legal advice Management's time working the floor filling in Human resource knowledge Record keepingManagers need to be trained in diversity issues to be better equipped for developing employees. Managers who are skilled in cultural diversity issues can help your property become the workplace of choice among non-traditional labor groups.The structurally unemployed segment of the population frequently must overcome numerous obstacles to maintain employment. Common among these are: transportation, childcare, language, health, and life skills. A well-trained manager can assist or guide the employees more effectively in overcoming these obstacles.The segments of the population which have been labeled Generation X and Generation Y represent the employee age profile we often seek. Both of these segments have grown up in the information age. They expect to become knowledgeable, and they're willing to seek out information. Effective training and development is especially useful with these segments of the population. Not only do they expect to be trained, they will leave if training is not available.

Chapter 2 - Competency 2:Differentiate the budgeting process for training in today's organizations from the past.Budgeting TrainingAs with other operational departments, training and development should have its own budget. Support of training at the corporate level, or top management level, will ensure that appropriate time and resources are allocated to training. If the upper tier of the hierarchy does not value training, it will certainly suffer.Organizations differ in training budgets. Most companies choose to report training as a percentage of payroll expenses; others choose to allocate training dollars as a percent of expected revenue. Many Fortune 500 companies invest five percent to ten percent of their payroll expenditures in training. However three percent to four percent is standard.A study conducted on training budgets of mid-sized hotels revealed less than standard amounts were designated for training. Of those reporting:Less the 0.50% of payroll33% of respondents

0.51-0.99%16%

1.0-1.50%12%

Greater than 1.5%3%

Unknown36%[endnote 12]

Within the typical training department, several different methods are used for allocating dollars. The first is by dividing the funds among salaries, facilities, and other expenses. A second method allocates training dollars per stage of the training cycle. These funds are commonly divided between analysis, design, development, implementation, and evaluation. A variation of these methods adds a capital expenses category that includes the training building or classroom, equipment, computers, and classroom furniture.Although the actual percent of dollars will vary depending on the organization, several examples lead to the approximate breakouts of the training budget shown inExhibit 4. There are distinct times when the training and development budget should be increased: During the first six months of operation At the introduction of new product (including a new menu item, a new room type, a new service) At the introduction of a new system During a period of increased growth resulting in increased hiring When implementing management development programsRegardless of how your company itemizes its training dollars, make sure the amounts are closely aligned with the organization's goals and objectives for the year. For example, if your company plans to introduce a new point-of-sale system, your training dollars should be closely aligned with the need for training on this new system. This same relationship should occur if the company plans to unveil a new service or plans a major promotion of an already existing product.During economic crises, training budgets are among the first to be cut. Often, this only raises expenses elsewhere. Learn how to track your training budget effectively. Articulate the effect of training on the organization, and be able to justify new training initiatives to upper management. Explore how training can help a property weather crises and come through them more quickly and profitably.An ideal training budget facilitates measurement and comparisons. You should be measuring the results of your training not only at the end of a session, but periodically after the employees have returned to work. Performance problems rarely go away by themselves. You can work with the operations manager to develop appropriate training intervention for performance problems employees experience. By quantifying the cost of a particular problem, you are better able to justify training dollars to resolve the problem.Historical PerspectiveHistorically, training departments have failed to promote themselves or their value to the overall operation. Training and development personnel play multiple roles: administrator, consultant, designer, instructor, and others. At any given time, trainers may be occupied with managing their own departments, aiding other departments in identifying performance problems, seeking outside industry opinions, designing solutions to performance problems, and then bringing training to life by facilitating learning.Often, training and development goals were so broad, they were impossible to quantify. Erroneously, training was often held responsible for all employee actions as they aligned, or did not align, with performance goals. Even the best training department can only assist in modeling employee actions. How the employee responds to instruction is primarily the responsibility of the employee and his or her immediate supervisor. It was believed that if service was good, the training must have been good. If the kitchen was in trouble, the trainer was told to adjust the culinary training program.Because training does not happen in a vacuum, there are countless operational variables that affect the success of training. It is very difficult to measure the effectiveness of training independent of other variables such as education, experience, and work environment.Another historical issue that the hospitality industry struggled with was choosing the right person to conduct the training. When a property was in a rush to get people into positions--especially after an opening or at a seasonal property--the tendency was to grab the highest performer and pair that person with a new hire. The high performer did not always have training skills, and the resulting training suffered.Why Is It Different Today?Today, training is being held more accountable financially. Trainers must justify their mere existence. Corporate downsizing, re-engineering, and a slowing economy have directed a greater focus on profit. There is still considerable debate whether training increases stakeholder value to an organization.Fortunately, more training departments today are being grouped in top management, answering directly to district managers, general managers, or the CEO. When training is aligned with the top management, there are many benefits. You are better positioned to make decisions among competing departments. You are also more likely to get the funding needed to accomplish the operation's goals and objectives.Organizing the training function so that the training manager answers directly to the district manager, general manager, or CEO introduces a proactive approach to training where the training manager is involved in the strategic planning and setting of priorities for the organization. This naturally allows the training manager to develop training in line with the organization's goals. Alignment with top management also means an increase in accountability and greater scrutiny from the CEO.One approach to formulating a training budget is seen in thezero-based budgetingconcept. In this case, the training budget is built from the front line up each year. The operational manager submits training requests and training activities on a per-employee basis for each employee in the operation. The budget is developed by assessing the costs of the employee's stated training needs. This concept ensures all employees receive some training each year.In the past, it was common for a larger percentage of the training budget to be earmarked for management development. This new budgeting method requires you to justify each expense each year.Sharing Costs with OthersNo training department--or hospitality organization--has unlimited resources. Look for occasions where you can share training costs with others. For example, in the introduction of a specific product, look to partner with the vendor of that product to train your employees. The equipment supplier or manufacturer may assist with the actual training or provide resources with which to conduct the training.Another option of sharing costs is charge-back, wherein the training department charges the user department for its services. For example, when you conduct needs analyses and evaluations of performance in specific departments, that department can share in the costs you incur, as you will be providing performance data to that department manager.There will be times when there is not enough money to fully fund all training initiatives. While the most effective way to deliver training is through thorough analysis, design, development, implementation, and evaluation, sometimes this is a luxury. You may have to cut certain elements even though it makes the training less effective. In such cases, there are options.One option, used successfully by many trainers, is the development of acompetency-based curriculum. By working with experts, usually longer-term employees in the position, you can identify the competencies needed to accomplish the job tasks. Using these competencies, you can create job aids for delivery of the training. Such job aids as checklists, signs, decision trees, and problem- solving guides can be developed to better train current and future employees.The Training ProposalFormal training proposals to upper management are essential to winning funding and support for your initiatives. For training to be taken seriously, these proposals should have a business format and speak the language of the managers within your organization. The proposal should be a formal written report.A training proposal should be: Clear Concise Professional Organized Objective CompleteYou need to develop your business writing style so that you can: State the existing problem Determine the costs of the existing problem State a recommendation Explain your decision Support your decision Provide documentation with such data as Cost-benefit analysis Costing worksheets Benefits worksheets Estimate the procedure List any intangibles that were not able to be adequately quantified State the expected outcomes of training Re-state the benefits for the operation or ROI from the trainingYour training proposal should be concise. It states the who, what, when, how, and cost of your training plan. When appropriate, you may choose to include the strategy you propose to accomplish the plan. To seek approval of upper management, you need to speak their language: direct and bottom-line oriented.The training proposal is one of your best tools to report optimum utilization of resources and better relate outcomes of training to the bottom line. You must account for all aspects of the training program: Planning Development Design Method selection Program direction Analysis Measurement Evaluation MaintenanceMake sure that you link all training programs to the organizational goals of your company. Your training proposal will receive a more positive review if you can directly link the training outcomes to a predetermined organizational objective.Chapter 2 - Competency 3:Identify the variables to consider when calculating the costs of training and the costs of not training.Costs of TrainingTo determine whether your training will have an adequate return on investment, you must accurately calculate the costs of training. Costs of training range from the dollars paid to purchase materials to the labor cost of trainees attending sessions to the opportunity cost of providing training on one subject area to the loss or delay of another.In this section of the chapter, we discuss costing practices, true costs, resources needed to determine costs, and intangible costs.Costing PracticesCalculating the true costs of training is a complex process. Costs must be identified carefully, as your proposal will not be taken seriously if others perceive it to be vague or inaccurate. Although some trainers will encourage the use of a standard percentage for estimating training costs, there must be data to support that percentage. Each operation, as well as each training session, will have varying costs. Although use of a standard percentage allows for quick and easy cost estimates, without specific supporting data your training proposal will lack definition and be subject to challenge.There are some standard practices you should use in costing a training project. They are: Use a systematic approach. Consider the entire life of the project. Start accumulating costs early. Know when to estimate a cost.Typically, it is much easier to quantify technical training than most managerial training. Technical training can be tied to specific skills with easy-to-identify equipment and training methods. Your costing strategy needs to be well defined, yet flexible enough to be able to adjust as real costs change over the life of the training program.In instances where you need to estimate costs, your calculations will be more accurate if you seek several bids or quotes from numerous suppliers. By beginning the estimation of costs in the early phase of a project, you're less likely to omit minute details that can add considerably to the total cost of a program. You will also need to estimate costs when you are developing a totally new program or amending or adding a new system to the organization.It is appropriate to ask suppliers questions related to the type of training that will be needed with the installation of a new system. Such questions should be: What type of training will be required to successfully use the new system? What skill level of employee will be involved in the training? Who will conduct the training? Is it you or is it the supplier? Will there be a need to employ a designated trainer long-term?Collecting the Data. As you begin to collect costs for training, you'll find that there is a massive amount of information. You should maintain all original quotes, estimates, and invoices to show the exact source and date to justify your figures. The data can also function as historical data when costing future programs. To increase the efficiency and accuracy of your costing process, this task should be assigned to one member of your team.Although all members of your team should have access to and be knowledgeable about the use of the data, there will be duplication of effort unless the system is streamlined. If one member of the team is responsible for obtaining, maintaining, and managing the database, accountability occurs. You will be more assured that the numbers are accurate and current at all times. By computerizing the cost data onto spreadsheets, the information will be easily accessible to the rest of your team.True CostsThere are numerous ways in which you can organize the costing process of training. However, to increase accuracy and efficiency, many professionals have chosen to divide costs in four primary areas. Common categories used in the hospitality industry are:1. Labor costs2. Materials costs3. Delivery costs4. Other costsWe will discuss the costs of training in these categories.Labor. Labor is typically the largest expense in a training program, though it is also one that trainers have neglected to budget for.Labor costscan include payments and wages to instructors, technicians, any support staff, and training developers. It also includes the wages of trainees while they are participating in training. A listing of labor associated costs of training appears inExhibit 5. The process of costing labor for training is similar to that of costing labor for operational financial analysis. Two calculations are typically used when determining labor costs:

You'll need to consider some unique factors associated with labor costs in the hospitality industry. Labor costs in hospitality will always be higher when compared to many manufacturing or other types of industries, since hospitality managers cannot automate most of the work of its employees.Today's shrinking labor pool has spurred higher wages in many positions simply to attract employees. Because wages are a major factor of labor costs, this shift to higher wages affects the end result.Labor costs are also affected by management, supervisors, training, scheduling, motivational level of employees, seasonality, and the ability to accurately forecast business. It is common to hear a manager say, "I need four people to cover the shift, but I'll schedule six in case some do not show up."Forecasting the labor costs of a training program follows the same process as forecasting labor for operations. Any manager or supervisor who creates a schedule will estimate the number of staff he or she will need. By looking ahead and predicting business, the manager estimates labor needs by examining: room occupancy rate, reservations rate, number of tee times booked, major parties arriving, local community events that will affect business, and seasonality.Forecasting your labor costs in training requires you to look into the future of the business as well. Being a team player in the organization, you need to schedule your training program during non-peak periods. These may be non-peak times of day, days of the week, or months in the year. You must schedule training at times which will have the least effect on the front-line of the operation. You need to estimate how many people you can effectively train and the number of hours you will need them for training.Forecasting is also used when estimating the number of labor hours needed to develop a new program. Labor costs in development are considerable and must account for all individuals who will be assisting in the development: instructional designers, consultants, industry experts, instructors, training management staff, and support staff. As you analyze the complexity of the proposed training program, you can forecast the amount of time necessary for development. Kearsley reports some rules of thumb when estimating development time: 60 hours of development time for one hour of classroom training 200 hours of development time for one hour of self-paced or interactive training.[endnote 13]In calculating labor costs, you will need to decide if you are tracking "direct labor" or "full labor" costs. Direct labor accounts for only salary or wages of the individuals. Full labor considers all costs associated with the individual, salary or wages plus all benefits. Benefits in the U.S. typically range from 30 percent to 50 percent of an employee's annual income. Check with your human resources department to learn the exact percentage that applies in your operation.Labor costs are tied to all phases of a training program. To increase accuracy, you need to consider the labor costs of your program in each phase: pre-program, needs assessment, design, development, planning, delivery, maintenance, evaluation, and follow-up.Materials. Training materials come in various forms and incur numerous costs, usually divided into subcategories of expendable and non-expendable.Expendables are those items we think of as one per person or items that will not be used again. Non-expendables are items you will be able to use again as you present this same program to other trainees. Examples of both are listed inExhibit 6. Delivery Time. Delivery costs are those incurred during the actual delivery time and those that facilitate the delivery process. They encompass a wide variety of items, as shown inExhibit 7. Other Costs. This category covers all miscellaneous costs. Each area, though small enough to not be considered a major cost category, nonetheless, needs to be paid for and accounted for in planning and analysis.Although not limited to these categories, "other" costs may include: Replacement costs Overhead Pre-program Follow-up Indirect Cost of cost analysis Opportunity costWhile employees are in training, they are not fulfilling their job responsibilities. Frequently, those jobs still need to be done; the cost of the individuals substituting for trainees is consideredreplacement cost. There are many difsferent ways to compute the replacement costs of training. Some believe it can be accounted for as a labor cost, others as a delivery cost. You will need to determine what is most appropriate for your organization.Several costs are associated with replacement employees. These are the trainee's wages or salarie