MGM 4125 Managing Training and Development Strategies in Training

1. MGM 4125 Managing Training and Development Strategies in Training Associate Professor Dr Haslinda Abdullah hba@putra.upm.edu.my Week 4

2. Outline • Relationship between business strategies with T&D • Organisational characteristics that influence training • Importance of Staffing and HR planning in T&D

3. Relationship between business strategies with T&D

4. Training Needs in Different Strategies • Concentration strategy • Internal growth strategy • External growth strategy • Disinvestment strategy

5. Concentration Strategy • A concentration strategy focuses on increasing market share, reducing costs, or creating and maintaining a market niche for products and services. • Training implications include team building, cross-training, specialized programs, interpersonal skill training, and on-the-job training.

6. Internal Growth Strategy • An internal growth strategy focuses on new market and product development, innovation, and joint ventures. • Training needs include promoting high quality; cultural training; promoting a company culture that values creative thinking; technical skills training; and training in providing feedback for managers

7. External Growth Strategy • An external growth strategy focuses on acquiring vendors and suppliers or buying businesses to enable the company to expand into new markets. • Training needs include conflict negotiation training; analysis of employee capabilities in acquired firms; the integration of multiple training systems; the integration of firms’ methods and procedures; and team building.

8. Divestment Strategy • A divestment strategy focuses on liquidation and divestiture of businesses. • Training implications include motivation, goal setting, time management, stress management, and cross training; leadership training; interpersonal communications training; outplacement assistance; and job search training.

9. Models of Organising the Training Department • Faculty Model • Customer model • Matrix model • The corporate university model • Business-embedded model

10. Models of Organizing the Training Department Faculty Model Customer Model Matrix Model Corporate University Model Embedded model

11. The Faculty Model Training Specialty Areas

12. Faculty Model • The department is headed by a director who oversees a staff of experts with specialized knowledge and/or skills • Advantages of this model include: • Staff members are experts in the area in which they train. • The programs the department offers are easily determined by staff expertise. • Disadvantages of this model include: • Staff expertise may not meet organizational needs. • Staff may be somewhat removed from business needs and, thus, training programs may lack meaning for trainees.

13. The Customer Model Business Functions

14. The Customer Model Customer Model • Used when the training function is organized so that training subunits are responsible for one division or function of the firm • The trainers might also be human resource generalists whose job responsibilities include the broad range of human resource functions including training, performance management, hiring, and benefits. • Advantages of this model include: • Overcoming the major problem of the faculty model by being more in line with needs of each unit or function of the firm. • Trainers can more easily keep on top of business needs and update courses and offerings accordingly. • External consultants can provide expertise as needed. • Training material is more likely to be meaningful and useful to trainees.

15. The Customer Model Customer Model • Disadvantages of this model include: • Trainers have to spend considerable time learning the particular business function with which they work before they can be effective. • There may be redundancy in program topics across units. • Programs may vary widely in effectiveness, because it may be difficult for the training director to ensure consistency across business functions. • Trainers are likely to be employees from the functional area who have the necessary subject matter expertise but lack learning facilitation skills. Thus, course content may be meaningful, but the course may be weak from an instructional perspective (unless trainers are trained to facilitate).

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

17. Matrix Model • The Matrix Model of training function organization involves having trainers report to both a training department manager and a functional area manager. Thus, the trainer must be competent both in terms of the functional area and in learning facilitation

18. Matrix Model • Advantages of this model include: • It helps to ensure that training is linked to business needs. • Trainers gain expertise in a specific business function. • Because trainers are also responsible to a training manager or director, they will likely stay on the cutting edge of training. • Disadvantages of this model include: • Trainers will likely have more time demands and role conflict because they report to two managers, a functional-area manager and a training manager.

19. The Corporate University Model

20. The Corporate University Model • The Corporate University Model of training function organization is an emerging approach that involves: employees, managers, suppliers, and external customers Creating a corporate university from scratch involves several steps. • Senior managers form a governing body. • A vision statement needs to be developed. • A company has to decide how to fund the university. • The degree to which all training needs to be centralized needs to be determined. • The needs of the university customers must be identified. • Products and services need to be developed. • Chose learning partners including: suppliers, consultants, colleges, and companies specializing in education. • Develop and utilize new technologies to train employees. • Learning that occurs should be linked to specific performance improvement. • The value of the corporate university needs to be communicated to potential customers.

21. The Corporate University Model • Advantages of this model include: • A wider range of programs and courses tend to be offered under this model. • Important culture features and values tend to be more emphasized in the training curriculum under this model. • Training is centralized such that the “best training practices” used in one unit are disseminated across the company. • Training practices and policies are consistent, better allowing the company to control costs. • Examples of corporate university in Malaysia?

22. Business-embedded model • Business-embedded model are an emerging trend that view trainees, their managers and senior level decision makers as customers of training. • A business-embedded model is characterized by five competencies: • Strategic direction, including a clearly described goal and direction to the department. • Product design • Structural versatility • Product delivery • Accountability for results

23. Comparison between a Business-Embedded Training Organization and a Traditional Training Department

24. Business-embedded model • Advantages of this model include: • Compared to a traditional training department, a BE is more customer-focused. • It provides customized training solutions based on customer needs. • It determines when and how to deliver training based on customer needs. • The most noticeable difference between a BE function and a traditional training department is its structure • In BE training functions all persons who are involved in the training process communicate and share resources. • The number of trainers in BE training functions varies according to the demand for products and services. • Trainers act as internal consultants providing a wide range of services.

25. Current Practice: Business-Embedded Model with Centralized Training • There is an increasing trend for the training function, especially in companies that have separate business units, to be organized by a blend of the BE model with centralized training that often includes a corporate university. • This approach allows the company to gain the benefits of centralized training but at the same time ensure that training can provide programs, content, and delivery methods that meet the needs of specific businesses

26. Marketing the Training Function • Internal marketing involves making employees and managers excited about training and learning. • Internal marketing is especially important for trainers who act as internal consultants to business units. For internal consultants to survive, they must generate fees for their services. • Training functions are beginning to become profit centers by selling training courses or seats in training courses to other companies. Companies sell training services for a number of reasons. • Some businesses are so good at a particular aspect of their operations that other companies are asking for their expertise. • Other companies aim training at their own customers or dealers. • In some cases, the training department sells used seats in training programs or e-learning courses.

27. Organisational Characteristics Influencing Training

28. What are the Organisational Characteristics that Influence Training? • Employees’ work roles • Managers’ work roles • Top management support • Integration of business units • Global presence • Business conditions

29. Other HRM Practices Influencing Training • Staffing strategy • Human resource planning • Extent of unionisation • Staff involvement in T&D

30. Importance of Staffing and HRD Planning in T&D

31. Outsourcing Training Outsourcing refers to the use of an outside company (an external services firm) that takes complete responsibility and control of some training or development activities or that takes over all or most of a company’s training including administration, design, delivery, and development.

32. Why Outsource Training? • Cost savings. • Time savings that allow a company to focus on business strategy. • Improvements in compliance and accuracy in training mandated to comply with federal, state, or local rules. • The lack of capability within the company to meet learning demands. • The desire to access best training practices.

33. Why NOT Outsource Training? • The inability of outsourcing providers to meet company needs. • Companies’ desire to maintain control over all aspects of training and development, especially delivery and learning content.