1. Chapter 2
Strategic Training

2. Introduction: Business 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

3. Strategy impacts training with a strong influence on determining: (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

4. Strategy impacts training with a strong influence on determining: (2 of 2)
Whether training is:
planned and systematically administered, or
provided only when problems occur, or
spontaneously 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

5. Evolution of Training’s Role
Training Event
Performance Result
Learning Emphasis
Create and Share Knowledge
Business Need

6. Evolution of Training’s Role: Learning
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

7. Evolution of Training’s Role: Knowledge
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 experience
Difficult to explain to others

8. Intellectual Capital Cognitive Knowledge (know what) Advanced Skills
(know how)
System Understanding
and Creativity
(know why)
Self-Motivated
Creativity
(care why) 4

9. The Strategic Training and Development Process:
Business Strategy
Strategic Training
and Development
Initiatives
Training and
Development
Activities
Metrics that Show
Value of Training
Mission
Values
Goals
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

10. Decisions a company must make about how 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?

11. Strategic Training and Development Initiatives and their Implications (1 of 4)
Diversify 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

12. Strategic Training and Development Initiatives and their Implications (2 of 4)
Improve 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

13. Strategic Training and Development Initiatives and their Implications (3 of 4)
Capture 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

14. Strategic Training and Development Initiatives and their Implications (4 of 4)
Ensure 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

15. Example: SunU’s Analysis to Align Training with Business Strategy (1 of 3)
Customers
Who are our customers and how do we work for them?
Organization
What is the nature of practices required to complete our mission?
Products and Services
How do we ensure that our products and services meet strategic requirements?

16. Research and Development
Example: SunU’s Analysis to Align Training with Business Strategy (2 of 3)
Research and Development
How do we stay current in the training and learning fields and use our knowledge in these areas?
Business Systems
What are the processes, products, tools, and procedures required to achieve our goals?

17. Example: SunU’s Analysis to Align Training with Business Strategy (3 of 3)
Continuous Learning
How do we recognize that learning at Sun Microsystems is continuous, is conscious, and comes from many sources?
Results
How do we obtain results according to our customers’ standards?

18. Metrics and Training: Balanced Scorecard (1 of 2)
Measurements that look at performance from the perspective of:
internal customers
external customers
employees
shareholders

19. Metrics and Training: Balanced Scorecard (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)

20. Organizational Characteristics That Influence 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

21. Encouraging Continuous Learning
The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (1 of 3)
Managing Alignment
Clarify team goals and company goals
Help employees manage their objectives
Scan organization environment for useful information for the team
Encouraging Continuous Learning
Help team identify training needs
Help team become effective at on-the-job training
Create environment that encourages learning

22. Coordinating Activities
The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (2 of 3)
Coordinating Activities
Ensure that team is meeting internal and external customer needs
Ensure that team meets its quantity and quality objectives
Help team resolve problems with other teams
Ensure uniformity in interpretation of policies and procedures

23. Facilitating Decision-Making Process
The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (3 of 3)
Facilitating Decision-Making Process
Facilitate team decision making
Help team use effective decision-making processes
Creating and Maintaining Trust
Ensure that each team member is responsible for his or her work load and customers
Treat all team members with respect
Listen and respond honestly to team ideas

24. Other HRM Practices
The type of training and resources devoted to training are influenced by the strategy adopted for two HRM practices:
Staffing
Human Resource Planning

25. Staffing 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)

26. HR Planning Influence on Training
HR planning allows the company to anticipate the movement of human resources in the company
HR plans can help identify where employees with certain types of skills are needed in the company
Training can be used to prepare employees for:
increased responsibilities in their current job
promotions, lateral moves, transfers
downward job opportunities that are predicted by the human resource plan

27. Implications of Business Strategy for Training (1 of 2)
Emphasis
How Achieved
Key Issues
Training Implications
Concentration
Increased market share
Reduced operating costs
Create or maintain market niche
Improve quality
Improve productivity
Customize products or services
Skill currency
Development of existing work force
Team building
Cross-training
Specialized programs
Interpersonal skill training
On-the-job training
Internal Growth
Market development
Product development
Innovation
Joint ventures
Add distribution channels
Expand global markets
Modify existing products
Create new products
Joint ownership
Create new jobs
Create new tasks
Communication of product value
Cultural training
Conflict negotiation skills
Manager training in feedback and communication
Technical competence in jobs

28. Implications of Business Strategy for Training (2 of 2)
Emphasis
How Achieved
Key Issues
Training Implications
External Growth (Acquisition)
Horizontal integration
Vertical integration
Concentric diversification
Acquire firms for new market access
Acquire firms to supply or buy products
Acquire any firm
Integration
Redundancy
Restructuring
Determining capabilities of acquired employees
Integrating training systems
Team building
Disinvestment
Retrenchment
Turnaround
Divestiture
Liquidation
Reduce costs
Reduce assets
Generate revenue
Redefine goals
Sell off all assets
Efficiency
Motivation
Goal setting
Stress management
Time management
Leadership training
Outplacement assistance
Job-search skills training

29. Models of Organizing the Training Department
Faculty Model
Customer Model
Matrix Model
Corporate University Model
Virtual Model

30. Training Specialty Areas
The Faculty Model
Training Specialty Areas

31. The Customer Model
Business Functions

32. Production and Operations
The Matrix Model
Training Specialty Areas
Production and Operations
Marketing
Business Functions

33. The Corporate University Model
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
Training Advantages
Dissemination of Best Practices
Align Training with Business Needs
Integrate Training Initiatives
Effectively Utilize New Training Methods and Technology
Product Development
Sales and Marketing
Human Resources
Operations
New Employee Programs

34. Virtual Model (Virtual Training Organizations)
Virtual training organizations operate according to three principles:
Employees (not the company) have primary responsibility for learning
The most effective learning takes place on the job, not in the classroom
For training to translate into improved job performance, the manager-employee relationship (not employee-trainer relationship) is critical

35. Characteristics of Virtual Training Organizations:
A virtual training organization is customer focused
Takes more responsibility for learning and evaluating training effectiveness
Provides customized training solutions based on customer needs
Determines when and how to deliver training based on customer needs
Leverages resources from many areas
Involves line managers in direction and content

36. Tactics to Market the Training Function (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

37. Tactics to Market the Training Function (2 of 2)
Identify a “champion” who actively supports training
Listen and act on feedback received from clients, managers, and employees
Advertise on , on company websites, in employee break areas
Designate someone in the training function as an account representative between the training designer and internal customer