Week 3 - Strategic Training

Strategic Strategic TrainingTraining

Strategic Planning and TrendsStrategic Planning and Trends

Strategy is the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

Strategic Planning Strategic Planning There are three levels of strategic planning

Corporate Strategy

BusinessStrategy

BusinessStrategy

BusinessStrategy

BusinessStrategy

FunctionalStrategies

IntroductionIntroductionBusiness strategy – a plan that integrates

the company's goals, policies, and actions.

The strategy influences how the company uses physical capital, financial capital, and human capital.

Goals – what the company hopes to achieve in the medium- and long-term future.

Introduction (cont.)Introduction (cont.)Strategy has a particularly strong influence

on determining:◦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 is 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.

Introduction (cont.)Introduction (cont.)◦Whether training is planned and systematically

administered; provided only when problems occur; or developed 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.

HR’s evolving roleHR’s evolving role

Change Agent

Strategic Partner

Employee Advocate

E-HRM & HRIS CHALLENGES

•High rate of change in market demand•High level of uncertainty•Rising costs•Competitive pressures on profit margins•High rate of technological changes•More complex organizations

Training RoleTraining Role

Knowledge: What individual or team of employees know or know how to do.Explicit knowledge: Knowledge that can be formalized, modified and communicated. Can be found in manuals, formulas and specifications.Tacit knowledge: Personal knowledge, based on individual experience. Difficult to explain to others, passed on to others through experiences, interaction & observation.

Strategic T&D ProcessStrategic T&D ProcessMissionValuesGoals

•Learning•Improved Performance•Reduced Complaints•Reduced Turnover•Emp. satisfaction

•Learning Portfolio•Customer Services•Pace of Employee

Learning•Capture & Share

Knowledge

•Web Based Training•Make Development Plan a must

•CS training must be given more weightage

Business strategy

StrategicT&D

Initiatives

T&DActivities

ValueFor

Training

Mission

Vision

Values

Goals

Reason for existence

Future that a companywants to achieve What the

companyStands for Targets

Linkage between the physical & financial Capital with the Human Capital is a MUST.

Company’s Business StrategiesCompany’s Business Strategies

Organizational Characteristics Organizational Characteristics That Influence TrainingThat Influence TrainingTop Management Support

◦The CEO is responsible for vision, and being a sponsor governor, faculty, learner, and marketing agent.

The degree to which a company's units or businesses are integrated affects the kind of training that takes place.

Global presence.Business conditions.

Organizational Characteristics Organizational Characteristics That Influence Training (cont.)That Influence Training (cont.)

Human Resource Management (HRM) Practices

The management activities related to

investments, staffing performance management, training, and compensation and benefits.

Organizational Characteristics Organizational Characteristics That Influence Training (cont.)That Influence Training (cont.)Staffing Strategy The company's decisions regarding where to find

employees, how to select them, and the desired mix of employee skills and statuses.

Human Resource Planning (HRP) Identification, analysis, forecasting, and planning of changes needed in the human resource area to help the company meet changing business conditions.

Organizational Characteristics Organizational Characteristics That Influence Training (cont.)That Influence Training (cont.)Staff involvement in Training and

Development◦If managers are not involved in the training

process, training may be unrelated to business needs.

◦If line managers are aware of what development activity can achieve, they will be more willing to become involved in it. They will also become more involved in the training

process if they are rewarded for participating.◦An emerging trend is that companies expect

employees to initiate the training process.

T&D InitiativesT&D InitiativesHow the Training Function will help the Company to reach its GOALS Diversify Learning Portfolio•New Technology•Informal training•Personalized Learning opportunities

Improve Customer Service•Have required products & Service•Have required knowledge about Product•Employees know their roles

Accelerate Pace of Employee Learning•Identify Needs & Provide high quality solutions•Reduce time to develop the training program•Facilitate access to learning resources on as needed basis

Capture & Share Knowledge•If employee leaves the company, knowledge is not lost•The type of decisions the employees can take•Methods to make information available

Use of new technologies•Web based trainings•Online trainings•Virtual Trainings

Mandatory Development Plan•Orientation plans•Continuous monitoring of performance•Each staff member should beprivileged with the relevant trainings•Reduced Turnover•Employee satisfaction

Customer Services

•Know your customers•Identify the needs •Provide the solutions•Personalized services•Reduced customer complaints

Training & Development Training & Development ActivitiesActivities

Learning•Approach towards work•Increased quality of work

Improved Performance•Less manufacturing faults•More work in less time

Reduced complaints

•More customers satisfaction•Increased customer turnover

Reduced Turnover•More specialized work force•More employee satisfaction•Less employee complaints•Increased motivation level

Metrics (Training evaluation)Metrics (Training evaluation)

Centralized Training Training and Development programs, resources,

and professionals are primarily housed in one location and decisions about training investment, programs, and delivery methods are made from that department.

Models of Organizing the Models of Organizing the Training DepartmentTraining Department

Faculty Model◦Looks a lot like the structure of a college.◦Training staff are experts in the areas in which they

train.◦The training department's plans are easily

determined by staff expertise.◦The training function may not meet the needs of the

organization.◦Trainers may be unaware of business problems or

unwilling to adapt materials to fit a business need.

Models of Organizing the Models of Organizing the Training Department (cont.)Training Department (cont.)

Customer Model◦Responsible for the training needs of one division or

function of the company.◦Training programs are developed more in line with

the particular needs of a business group.◦Trainers are expected to be aware of business

needs and to update courses and content to reflect them.

◦Involves considerable time, programs may vary greatly in effectiveness, and design may be poor.

Models of Organizing the Models of Organizing the Training Department (cont.)Training Department (cont.)

Matrix Model◦The trainer has the responsibility of being both a

training expert and a functional expert.◦It helps ensure that training is linked to the

needs of the business.◦Trainer gains expertise in understanding a

specific business function.◦Trainers will have more time demands and

conflicts because they report to two managers.

Models of Organizing the Models of Organizing the Training Department (cont.)Training Department (cont.)

Outsourcing – the use of an outside company that takes complete responsibility and control of some training or development activity or that takes over all or most of a company's training including administration, design, delivery, and development.

Outsourcing Training Outsourcing Training

Outsourcing Training (cont.)Outsourcing Training (cont.)Why companies outsource training:

◦Cost saving.◦Time saving, 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.

Outsourcing Training (cont.)Outsourcing Training (cont.)Two reasons companies do not

outsource their training are:

◦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.

Trainee TypesTrainee Types• Pigs• Prisoners• Passengers• Participants• People to fight

Training that motivates Training that motivates adults to learnadults to learn

• Training relevance

• Value

• Readiness to learn

• Allowing trainees control over their learning

• Involving trainees in the process