chap 002

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

2 - 1

2Chapter

Strategic Strategic TrainingTraining


2 - 2

Introduction: Introduction: Business StrategyBusiness Strategy

A plan that integrates the company’s goals, policies, and actions

The strategy influences how the company uses:physical capital (plants, technology, and equipment)financial capital (assets and cash reserves)human capital (employees)

The business strategy helps direct the company’s activities to reach specific goals


2 - 3

Strategy impacts training with a strong Strategy impacts training with a strong influence on determining:influence on determining: (1 of 2)(1 of 2)

The amount of training devoted to current or future job skills

The extent to which training is customized for:the particular needs of an employee,or developed based on the needs of a team, unit, or division

Whether training is restricted to specific groups of employees or open to all employees


2 - 4

Strategy impacts training with a strong Strategy impacts training with a strong influence on determining:influence on determining: (2 of 2)(2 of 2)

Whether training is:planned and systematically administered, orprovided only when problems occur, orspontaneously as a reaction to what competitors are doing

The importance placed on training compared to other human resource management practices such as selection and compensation


2 - 5

Evolution of Training’s RoleEvolution of Training’s Role

Create and Share Knowledge

Learning Emphasis

Training Event

Performance Result

Business Need


2 - 6

Evolution of Training’s Role: Evolution of Training’s Role: LearningLearning

The acquisition of knowledge by individuals, employees, or groups of employees

Willing to apply that knowledge in their jobs in making decisions and accomplishing tasks for the company


2 - 7

Evolution of Training’s Role: Evolution of Training’s Role: KnowledgeKnowledge

Human and Social Knowledge:

What individuals or teams of employees know or know how to do

Structured Knowledge:Company rules, processes, tools, and routines

Explicit Knowledge:Knowledge that can be formalized, codified, and communicated

Tacit Knowledge:Personal knowledge based on individual experienceDifficult to explain to others


2 - 8

Cognitive Knowledge(know what)

Advanced Skills(know how)

System Understandingand Creativity

(know why)

Self-MotivatedCreativity(care why)

Intellectual CapitalIntellectual Capital


2 - 9

The Strategic Training and Development The Strategic Training and Development Process:Process:

Business StrategyBusiness StrategyStrategic TrainingStrategic Trainingand Developmentand Development

InitiativesInitiatives

Training andTraining andDevelopmentDevelopment

ActivitiesActivitiesMetrics that ShowMetrics that ShowValue of TrainingValue of Training

Diversify the Learning Portfolio

Improve Customer Service

Accelerate the Pace of Employee Learning

Capture and Share Knowledge

Use Web-Based Training

Make Development Planning Mandatory

Develop Websites for Knowledge Sharing

Increase Amount of Customer Service Training

Learning Performance

Improvement Reduced Customer

Complaints Reduced Turnover Employee

Satisfaction

Mission Values Goals


2 - 10

Decisions a company must make about how Decisions a company must make about how to compete to reach its goals:to compete to reach its goals:

1. Where to compete?In what markets, industries, products will we compete?

2. How to compete?On what outcome or differentiating characteristic will we compete?

3. With what will we compete?What resources will allow us to beat the competition?How will we acquire, develop, and deploy those resources to compete?


2 - 11

Strategic Training and DevelopmentStrategic Training and DevelopmentInitiatives and their ImplicationsInitiatives and their Implications (1 of 4)(1 of 4)

Strategic Training and Development Initiatives ImplicationsDiversify the Learning Portfolio

Use new technology for training Facilitate informal learning Provide more personalized learning opportunities

Expand Who is Trained Train customers, suppliers, and employees Offer more learning opportunities for non-managerial

employees

Accelerate the Pace of Employee Learning

Quickly identify needs and provide a high-quality learning solution Reduce the time to develop training programs Facilitate access to learning resources on an as-needed

basis


2 - 12


Strategic Training and Development Initiatives ImplicationsImprove Customer Service Ensure that employees have product and service

knowledge Ensure that employees have skills needed to interact with

customers Ensure that employees understand their roles and

decision-making authority

Provide Development Opportunities and Communicate to Employees

Ensure that employees have opportunities to develop Ensure that employees understand career opportunities

and personal growth opportunities Ensure that training and development addresses

employees’ needs in current job as well as growth opportunities


2 - 13


Strategic Training and Development Initiatives ImplicationsCapture and Share Knowledge

Capture insight and information from knowledgeable employees Logically organize and store information Provide methods to make information available

Align Training and Development with the Company’s Strategic Direction

Identify needed knowledge, skills, abilities, or competencies Ensure that current training and development programs

support the company’s strategic needs


2 - 14


Strategic Training and Development Initiatives ImplicationsEnsure That the Work Environment Supports Learning and Transfer of Training

Remove constraints on learning Dedicate physical space to encourage teamwork,

collaboration, creativity, and knowledge sharing Ensure that employees understand the importance of

learning Ensure that managers and peers are supportive of training,

development, and learning


2 - 15

Example: Example: SunU’s Analysis to Align Training SunU’s Analysis to Align Training with Business Strategy with Business Strategy (1 of 3)(1 of 3)

CustomersWho are our customers and how do we work for them?

OrganizationWhat is the nature of practices required to complete our mission?

Products and ServicesHow do we ensure that our products and services meet strategic requirements?


2 - 16


Research and DevelopmentHow do we stay current in the training and learning fields and use our knowledge in these areas?

Business SystemsWhat are the processes, products, tools, and procedures required to achieve our goals?


2 - 17


Continuous LearningHow do we recognize that learning at Sun Microsystems is continuous, is conscious, and comes from many sources?

ResultsHow do we obtain results according to our customers’ standards?


2 - 18

Metrics and Training: Metrics and Training: Balanced ScorecardBalanced Scorecard (1 of 2)(1 of 2)

Measurements that look at performance from the perspective of:

internal customers

external customers

employees

shareholders


2 - 19

Metrics and Training: Metrics and Training: Balanced ScorecardBalanced Scorecard (2 of 2)(2 of 2)

Four different perspectives are considered:Customer

(time, quality, performance, services, cost)Internal

(processes that influence customer satisfaction)Innovation and Learning

(operating efficiency, employee satisfaction, continuous improvement)

Financial(profitability, growth, shareholder value)


2 - 20

Organizational Characteristics ThatOrganizational Characteristics ThatInfluence TrainingInfluence Training

Roles of Employees and Managers

Top Management Support

Integration of Business Units

Global Presence

Business Conditions

Other HRM Practices

Extent of Unionization

Staff Involvement in Training and Development


2 - 21

The Roles and Duties of Managers in Companies The Roles and Duties of Managers in Companies That Use High-Performance Work Practices That Use High-Performance Work Practices (1 of 3)(1 of 3)

Managing AlignmentClarify team goals and company goalsHelp employees manage their objectivesScan organization environment for useful information for the team

Encouraging Continuous LearningHelp team identify training needsHelp team become effective at on-the-job trainingCreate environment that encourages learning


2 - 22


Coordinating ActivitiesEnsure that team is meeting internal and external customer needsEnsure that team meets its quantity and quality objectivesHelp team resolve problems with other teamsEnsure uniformity in interpretation of policies and procedures


2 - 23


Facilitating Decision-Making ProcessFacilitate team decision makingHelp team use effective decision-making processes

Creating and Maintaining TrustEnsure that each team member is responsible for his or her work load and customersTreat all team members with respectListen and respond honestly to team ideas


2 - 24

Other HRM PracticesOther HRM Practices

The type of training and resources devoted to training are influenced by the strategy adopted for two HRM practices:

StaffingHuman Resource Planning


2 - 25

Staffing Strategy Influence on TrainingStaffing Strategy Influence on Training

Two aspects of a company’s staffing strategy influence training:

The criteria used to make promotion and assignment decisions (assignment flow)The places where the company prefers to obtain human resources to fill open positions (supply flow)


2 - 26

HR Planning Influence on TrainingHR Planning Influence on Training

HR planning allows the company to anticipate the movement of human resources in the companyHR plans can help identify where employees with certain types of skills are needed in the companyTraining can be used to prepare employees for:

increased responsibilities in their current jobpromotions, lateral moves, transfersdownward job opportunities that are predicted by the human resource plan


2 - 27

Implications of Business Strategy for TrainingImplications of Business Strategy for Training(1 of 2)(1 of 2)

Strategy Emphasis How Achieved Key Issues Training Implications

Concentration Increased market shareReduced operating costsCreate or maintain market niche

Improve qualityImprove productivityCustomize products or services

Skill currencyDevelopment of existing work force

Team buildingCross-trainingSpecialized programsInterpersonal skill trainingOn-the-job training

Internal Growth Market developmentProduct developmentInnovationJoint ventures

Add distribution channelsExpand global marketsModify existing productsCreate new productsJoint ownership

Create new jobsCreate new tasksInnovation

Communication of product valueCultural trainingConflict negotiation skillsManager training in feedback and communicationTechnical competence in jobs


2 - 28

Implications of Business Strategy for TrainingImplications of Business Strategy for Training(2 of 2)(2 of 2)

Strategy Emphasis How Achieved Key Issues Training Implications

External Growth (Acquisition)

Horizontal integrationVertical integrationConcentric diversification

Acquire firms for new market accessAcquire firms to supply or buy productsAcquire any firm

IntegrationRedundancyRestructuring

Determining capabilities of acquired employeesIntegrating training systemsTeam building

Disinvestment RetrenchmentTurnaroundDivestitureLiquidation

Reduce costsReduce assetsGenerate revenueRedefine goalsSell off all assets

Efficiency MotivationGoal settingStress managementTime managementLeadership trainingOutplacement assistanceJob-search skills training


2 - 29

Models of Organizing the Training DepartmentModels of Organizing the Training Department

Faculty ModelCustomer Model

Matrix Model

Corporate University Model

Virtual Model


2 - 30

The Faculty ModelThe Faculty Model

Training Specialty Areas

Director of Training

SafetyTraining

QualityTraining

Technologyand

ComputerSystems

LeadershipDevelopment

SalesTraining


2 - 31

The Customer ModelThe Customer Model

Business Functions

Director of Training

InformationSystems

Marketing

Productionand

Operations

Finance


2 - 32

The Matrix ModelThe Matrix Model

S a lesTra in in g

Q u a lityTra in in g

Tec h n o log yan d

C om p u terS ys tem s

S afe tyTra in in g

D irec tor o f Tra in in g

Business Functions

MarketingProduction

and Operations

Training Specialty Areas


2 - 33

The Corporate University ModelThe Corporate University Model

Training Advantages

Dissemination of Best Practices

Align Training with Business Needs

Integrate Training Initiatives

Effectively Utilize New Training Methods and Technology

Historical Training Problems

Excess Costs

Poor Delivery and Focus

Inconsistent Use of Common Training Practices

Best Training Practices Not Shared

Training Not Integrated or Coordinated

Leadership Development Programs

New Employee Programs

Product Development Operations

Sales and Marketing

Human Resources


2 - 34

Virtual ModelVirtual Model(Virtual Training Organizations)(Virtual Training Organizations)

Virtual training organizations operate according to three principles:

Employees (not the company) have primary responsibility for learningThe most effective learning takes place on the job, not in the classroomFor training to translate into improved job performance, the manager-employee relationship (not employee-trainer relationship) is critical


2 - 35

Characteristics of Virtual Training Characteristics of Virtual Training Organizations:Organizations:

A virtual training organization is customer focusedTakes more responsibility for learning and evaluating training effectivenessProvides customized training solutions based on customer needsDetermines when and how to deliver training based on customer needsLeverages resources from many areasInvolves line managers in direction and content


2 - 36

Tactics to Market the Training FunctionTactics to Market the Training Function(1 of 2)(1 of 2)

Involve the target audience in developing the training or learning effort

Demonstrate how a training and development program can be used to solve specific needs

Showcase an example of how training has been used within the company to solve specific business needs


2 - 37

Tactics to Market the Training FunctionTactics to Market the Training Function(2 of 2)(2 of 2)

Identify a “champion” who actively supports training

Listen and act on feedback received from clients, managers, and employees

Advertise on e-mail, on company websites, in employee break areas

Designate someone in the training function as an account representative between the training designer and internal customer

chap 002

Documents