1. Aligning Training with Strategy
Chapter 2
Aligning Training with Strategy
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

2. Discussion Themes for Class activities /tutorials assignment related.
Discuss the training and development methods used by an/your chosen organisation to develop the competencies of leaders/managers. Pre-read -Chapter 2and 6

3. Alignment
Training activities need to be aligned with the organization’s strategy to be effective.
Part of the alignment process is the development of training unit strategies in support of the organizational strategies.
So it is important for training professionals to understand the basics of the strategic planning process.

4. Strategic planning
Formalized strategic planning is a process used to determine how best to pursue the organization’s mission while meeting the demands of the environment in the near (e.g., next year or two) and long term (e.g., next five to ten years). A proactive strategy focuses on the longer term, and its process is more formalized, typically involving sophisticated analytical and decision-making tools.

5. Reactive Strategy
Strategy can also develop in a more reactive fashion, responding to short-term business conditions.
In a reactive strategy less formal analysis and planning occur and more attention is focused on the immediate future.
Many suggest that both reactive and proactive strategies are necessary for an organization to be effective

6. The proactive process
The proactive process uses a best guess about what the future will bring, whereas the reactive process addresses how operations will confront what exists now and in the next year or two.
A strategic plan that positions the firm for long-term expectations but is modified by the firm’s experience as it moves forward is preferable to either having a rigidly held long-term plan or reacting only to short-term experience.

7. Levels of Strategic Planning
To be effective, strategic planning should occur throughout the organization, with each higher level of the organization providing direction to the lower levels. Once a strategic plan has been developed, organizational units develop or are given objectives by higher-level units that, when combined, will implement the strategy.

8. Unit strategies
The units develop their own strategies and tactics to achieve the organizational strategies. Individuals within the unit are given or develop objectives that will help achieve the unit’s objectives.

9. HR Unit strategy
From the HR unit’s perspective, the organizational strategy provides the direction for HR’s strategic objectives. HR develops supporting tactics that provide the HR staff with a set of objectives to achieve (see Figure to follow ).

10. Strategy, Tactics, and Objectives
Competitive
Strategy
Mission
Opportunities
Threats
Strengths
Weaknesses
Tactical Activities
Unit
Objectives
Unit
Strategies
and Tactics
Employee
Objectives
Implementation, Evaluation, and Feedback

11. Coordination
The diagram shows that plans for implementing the organization’s strategy are developed and coordinated throughout the organization.

12. Organizational Mission
Strategies are created to achieve the organization’s mission.
A mission statement articulates why the organization exists. The mission is the focal point for strategy development because it outlines what the strategy is designed to achieve.
You must state this mission for your chosen organization.!

13. Choices
Strategies reflect choices that the organization makes about how to pursue its mission. An organization must choose from among several often contradictory strategies.
The strategic choices a company makes have significant implications for where HRD should focus its resources.

14. Competitive Strategy
The literature dealing with strategy contains a great many categorizations and terms that refer to different types and levels of strategy.
Competitive strategy focuses on positioning the company’s products or services in the marketplace. This important strategy encompasses the internal and external choices the company makes to improve or retain its competitive position.
Two examples of competitive strategy are market leader and cost leader.
You must try and categorise the strategy of your chosen organization!

15. Different Strategies
Most organizations with multiple products or services will have different strategies for each product or service.
Additionally, there are many ways to pursue a single strategy.

16. HR
The HR department needs to be involved in the strategic planning process to provide information about workforce readiness to implement various alternative strategies being considered.
HR also provides input in relation to managing change arising from new strategic directions.

17. OD
OD focuses on improving the effectiveness of the organization through planned change. Strategic planning and training can benefit from the concepts, principles, and techniques used in OD.

18. Training
While training is focused on improving employee capabilities, OD is focused on managing performance.
Improved capabilities do not translate into improved performance unless the performance management system is aligned to support those capabilities.

19. HRD v OD ?
No matter how good the performance management system, employees will not perform if they don’t have the capabilities.
For this reason alone, the HRD and OD units need to work closely together.
While there are differences in the focus of these two units that often create friction, their ultimate objectives are the same

20. Strategic Direction
The choice of strategic direction will also help determine the way HRD is structured.
Cost leader organizations operate in a stable environment, and more training can be centralized.
Market leaders, conversely, operate in an uncertain environment, and the HRD department needs to be more decentralized.
Competitive strategy will also influence the degree to which HRD will outsource training.

21. Environmental Stability Factors
Complexity
High
Low S T A B I L Y
Moderate
Uncertainty

22. External Environment
An organization’s external environment consists of elements outside the organization that influence the organization’s ability to achieve its mission, such as competitors, the economy, societal norms and values, laws and regulations, raw materials, suppliers, and technological innovation.

23. Opportunities /Threats
Each organization must determine the threats and opportunities that exist in its environment and address those that are critical in the strategy.

24. Mission, Strategy, Technology, Structure Relationship

25. Uncertainty
Environmental uncertainty is determined by two factors: complexity and stability. Environmental complexity refers to the number of factors in the environment and the degree to which they are interrelated.

26. Stability
Environmental stability is the rate at which key factors in the environment change—the more rapid the change, the more unstable the environment.
When the environment is more complex and unstable, it is more uncertain

27. Environmental Stability Factors
Complexity
High
Low S T A B I L Y
Moderate
Uncertainty

28. Environmental Stability Factors
Once again the figure that follows shows the relationships among environment, strategy, structure, and technology.
As the figure indicates, strategy is the process of making internal adjustments to accommodate the demands of the external environment while remaining true to the mission. Note, however, that the arrow between strategy and environment shows influence

29. Mission, Strategy, Technology, Structure Relationship

30. HR Issues
We must realise that HR issues are the only, or the most important, influence on the strategic direction taken by an organization; however, they should be and important part of the equation.

31. Strategic Variables
The relative importance of strategic variables such as technology, financial assets, product mix, and HR varies from one context to the next.

32. Competencies and Success
Likewise the importance of HRD issues to competitive strategy depends on how central employee competencies are related to successful implementation.
The figure that follows shows how HR and HRD are related to the organization’s business strategy.

33. Flow of Strategy Development
Organization’s External Environment
Labor
Market
Legal Environment
COMPETITIVE
STRATEGY
Employee KSAs
Labor Relations
Corporate Culture
Core Technology
Organization’s Internal Environment
HUMAN RESOURCE STRATEGY
HRD Strategy
Economic
Conditions
Competition

34. HR
The HR department needs to be involved in the strategic planning process to provide information about workforce readiness to implement various alternative strategies being considered.
HR also provides input in relation to managing change arising from new strategic

35. Generic Steps in Planned Change
Establish a compelling need for change.
Develop the goals for change in collaboration with concerned parties.
Determine what is causing the need for change.
Identify and evaluate alternative approaches to create the desired change.
Select an approach.
Implement the approach and evaluate the results.
Feedback results to concerned parties.
If results are favorable, institutionalize the change. If not got to step 4.

36. Differences Between OD Practitioners and Trainers
Issue
OD Practitioner
Trainer
Role
Strategic
Tactical
Client
Top Management
Middle to lower level management
Response to problems with organizational politics, structure, etc.
Challenge
Confront
Work around or within the system
Organizational perception
Overly Analytical
Gets things done

37. Force-Field Analysis Model
Driving Forces
Restraining Forces
Current Situation
Develop strategies to:
Reduce the forces restraining change
Increase the forces for change (or capitalize on existing drivers).

38. Questions to Assess Training Provider Capabilities – Part 1 of 2
What is the trainer’s background (education, experience, etc.)?
Has the trainer ever provided relevant training programs or services before?
Has the training been evaluated? If so, what levels of outcomes were evaluated and what have been the results?
Can the trainer give you references who could speak knowledgeably about the trainer’s products and services (trainees, HR contact person, etc.)?

39. Questions to Assess Training Provider Capabilities – Part 2 of 2
Can the vendor provide examples or an outline of his approach or process? Will this fit your organization’s culture and budget?
Can the vendor show you materials, such as handouts, exercises, and videos?
How will the materials be made specific to your organization?

40. Small Business Owners’ Reasons for Not Planning Strategically
Not enough time
Unfamiliarity
Lack of skills
Lack of trust
Day-to-day operations and concerns about tomorrow are the excuses for not planning for next year.
Lack of awareness of strategic planning or failure to see its value.
Do not have the skills or time to learn them. Do not wish to spend money to bring in consultants.
Want to keep key information confidential.

41. Strategic Questions for Small Business
Why are we in business?
What are the key things we are trying to achieve?
Who is our competition and how can we beat them?
What sort of rules should we be following to get the job done right?
How should we organize ourselves to reach our goals?
How much detail do we need to provide and how do we make sure everyone gets the information?
What few key things will determine if we make it? How do we address and keep track of them?

42. Class Work
Describe some of the nonelectronic training methods and its strengths and limitations.
How would you choose the training methods to best suit the different types of KSAs/ learning objectives?
Give suitable examples to support your answer.