Chapter

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. 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 Evolution of Training’s Role: Knowledge

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

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 DevelopmentInitiatives and their Implications(1 of 4)

12. Strategic Training and DevelopmentInitiatives and their Implications(2 of 4)

13. Strategic Training and DevelopmentInitiatives and their Implications(3 of 4)

14. Strategic Training and DevelopmentInitiatives and their Implications(4 of 4)

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. 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. 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 ThatInfluence Training

21. 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. 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. 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)

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

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

30. The Faculty Model Training Specialty Areas

31. The Customer Model Business Functions

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

33. The Corporate University Model Training Advantages Dissemination of Best Practices Align Training with Business Needs Integrate Training Initiatives Effectively Utilize New Training Methods and Technology Leadership Development Programs 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 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 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