How Training Supports an Organization’s Strategy

1. How Training Supports an Organization’s Strategy

2. What is a 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. Review...Strategy Formulation • Mission • Goals • External analysis • Internal analysis • Strategic choice

4. Review...S W O T Analysis • Internal Strengths • Internal Weaknesses • External Opportunities • External Threats

5. Strategy impacts training by influencing: • 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.

6. Strategy impact on training (continued) • 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.

7. 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 Organizational Characteristics That influence Training

8. 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

9. Chesebrough-Ponds Discussion Question 4 Noe, page 69

10. Summary • Expand product lines • Repackaging Vaseline Petroleum Jelly in pocket-size squeeze tubes called Vaseline Lip Therapy • Strategic emphasis on developing markets

11. Summary - 2 • Knew customers already using product in original container to prevent chapped lips • Managers reasoned that market could be expanded significantly if product were repackaged to fit conveniently in customers’ pockets and purses

12. What business strategy is Chesebrough-Ponds using? • Concentration • Internal growth • External growth • Disinvestment

13. What training needs result from this strategy? • Concentration • Internal growth • External growth • Disinvestment

14. Implications of Business Strategy for Training(1 of 2)

15. Implications of Business Strategy for Training (2 of 2)

16. What are the training implications of this decision for1) manufacturing?2) the sales force?

17. The Broadening of Training’s Role Focus on Teaching Skills and Knowledge Link Training to Business Needs Use Training to Create and Share Knowledge

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