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In business, the role of HR is especially important. How well HR performs their job will directly impact the company's success. Good-performing HR will lead to an increase in employee productivity and company revenue, poor performing HR will lead to a decrease in both employee productivity and company revenue. That is why it is especially important for people working in HR to understand the impact their decision has on the company. Discover how simulation-based training can be used to solve this problem.
Good human resource management is undoubtedly one of the most important things for a company to have. How well a company manages their human resources will determine the company's success. Poor human resource management in a company will create a company that is filled with unengaged and unproductive employees. A company like this is doomed to fail and be left behind in the business world. To put the importance of good HR in perspective, think of HR in your organization as like that of the heart in a human's body. A healthy heart will deliver blood that is rich in oxygen & much-needed nutrients to the whole body. Similarly, good HR will deliver employees that are "rich" in relevant knowledge & skillset that allow one’s organization to thrive in the face of today’s dynamic business landscape. In other words, the decision HR function made directly affects an employee's productivity rate and revenue. However few people working in HR understand how their decision impacts the company. This problem occurs because many companies are still relying on lecture-based teaching methods to train their new HR employees.
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Why is lecture-based training ineffective?
Many companies still rely on lecture-based teaching methods to prepare their new HR employee for the job. This happens because lecture-based teaching methods are easier and cheaper to do. However, studies have shown that lecture-based teaching methods are boring and ineffective in helping people to learn [1]. This meta-analysis study found that students who are taught with a lecture-based teaching method are 1.5 times more likely to fail exams than students who are taught with an active teaching method. Meaning that students who are taught with an active teaching method are 1.5 times more likely to succeed in their exams. This meant that an active teaching method is more effective than a lecture-based teaching method.
Kelly [2] an expert on education stated that one of the disadvantages of lecture-based teaching is that lecture-based teaching tends to be long and monotonous which creates difficulties for even the most diligent students in class to engage. Lack of engagement during the class leads to the feeling of boredom and lack of focus experienced by the students. Furthermore, lecture-based teaching also doesn’t leave room for questions, making confused students even more likely to shut down. In other words, lecture-based teaching methods make it very difficult for even the most diligent students to learn about the teaching material and might cause confused students to completely stop trying to learn.
Illustration of ineffective lecture-based training
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Imagine yourself as one of the new HR employees, you’ve only been working in the company with 15 other new recruits for a week, and the first week has been very hectic due to a lot of administrative training that you and the other new employees must go through. In your mind, you’re thinking that it would be very nice for you to be able to rest after a hectic first week during the weekends. However, the company think that it would be a good idea to separate the most important lesson (the impact of HR decision on the company) from the other training courses and decided to hold them at the weekends. But, since you’re a diligent and motivated person, you excitedly attend the training.
The training consisted of a three-hour long lecture in a typical seminar room filled with seats without a proper table for you to write notes of the lecture, you’re also forced to be a passive listener during the whole lecture. The only chance you can participate actively in the training is at the end of the lecture during the short 15-minute Q&A session. The trainer is a very smart and experienced HR senior, the training material is also very good and easy to understand. During the training you’re trying your best to focus, listen, and learn from the training. However, because of the passive role that you take in the training it creates a lack of engagement between the participants and the trainee. The tiredness that you feel from the hectic first week of work starts to make it very difficult for you to stay focused on the lecture. You ended up feeling bored and drowsy during the middle part of the lecture. And in the end, you’ve realized that you completely forgot what half of the lecture was about and ended up with incomplete information. You feel very frustrated and try to gain information from the other new employees, but none of them seems to have a clear memory of the later part of the lecture.
The anecdote above is a common example of how lecture-based training plays out in the real world. Although dedicating one day to training new employees is a very good idea, since it won’t take up the daily working hours and allows the employee to completely focus on the training. Combining it with lecture-based teaching methods will make it very difficult for even the most diligent employees to learn. Regardless of how smart the trainer and how amazing the training material that is given, the passive role that the employees take in the training created a lack of engagement and ended up making even the most diligent employees have difficulty staying focused during the entire training. The experience of a global telecommunications company illustrates how simulation-based training can help both new and old HR employees to learn the impact of HR decision on the company.
Using simulation-based training to solve the problem.
One of the leading global telecommunication companies with this problem engaged with our organizational development team to help them teach their HR division the impact of their decision on the company. To accomplish this, our organizational development team created an HR academy. A simulation-based training aimed to teach both new and already existing HR employees the impact their decision has on the employee productivity rate and company revenue. AMBIZ simulation-based training is developed using the 50/40/10 rule as the foundation. 50 percent of experiential learning happens throughout the simulation period, 40 percent of social learning happens during the discussion which happens during the simulation period and the sharing period after every simulation period, and 10 percent of formal learning occurs through a training material delivery after the simulation period is over.
The simulation period consisted of 4 quarters. During the simulation quarter, the trainees are grouped into a team of 5 and play as HR for various companies. They will compete to be the number 1 with all the other trainees who are participating in the training. Their job is to manage the employee life cycle and administer the employee benefits. Every decision they make will have a direct impact on both employee productivity and company revenue. Good HR decisions will lead to an increase in employee productivity and company revenue, bad HR decisions will lead to the opposite outcome. Through this simulation quarter, they will learn in real-time how their decision can lead to a company becoming the winner or the loser of the game. During the simulation, they can discuss how to win the game with their team members. Many of the trainees ended up discussing what decision to make to win the game, which taught them about good HR practices and the impact of their decision as an HR on the company.
After every quarter, the leading team will be interviewed regarding their winning strategy. Through this they can also gain perspective from other trainees who are currently ranked higher on the leaderboard. They can learn what decision leads to a positive impact on employee productivity and company revenue. Further enriching their understanding of how their decision impacts the company.
Finally, after the simulation period is over, the AMBIZ trainer will deliver the training material explaining all the reasons for the company to win or lose the game. This helps them to confirm the knowledge and the understanding they have gained during the simulation period.
How was the result?
Through this approach, we have managed to teach them the impact of HR decision-making on employee productivity rate and company revenue in an interesting, interactive, and engaging manner. Below are the results of the HR academy training:
92.85% of the Attendants Said That the HR
Academy is Benfical for Their Careers.
Source : AMBIZ.com
The Attendants Stated That They Learned
About HR Knowledge, HR Strategy, and
Business
Strategy
From
The HR Academy.
Source : AMBIZ.com
96.43% of the Attendants Said That the HR
Academy Has Sucessfully Improve Their
Knowledge.
Source : AMBIZ.com
96.43% of the Attendants Said That the
Training Material of the HR Academy Is Good
and
Excellent
Source : AMBIZ.com
To further improve employee productivity and company revenue. The company plans to implement the same training for the head level of their HR division.
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