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Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

22Chapter

Strategic TrainingStrategic TrainingStrategic TrainingStrategic Training

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Training is most effective when:Training is most effective when: A company’s strategy affects the time and money

invested in training. Training helps employees learn job skills and

helps the company retain and motivate employees. Training is strategic for:

Business goals related to human resources, andProductivity, customer service, and innovation

Employees are aware that training is essential to their future marketability.

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TermsTerms Strategy is a plan for achieving the organization’s

goals Goals are specific statements about what the

company hopes to achieve Mission is a general statement about why the firm

exists and what commitments it’s making Strategic planning is the development of

relatively long-term objectives and plans for pursuing the company’s mission

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What is a Business Strategy?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.

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Decisions a Company Must Make about Decisions a Company Must Make about How to Compete to Reach Its GoalsHow to Compete to Reach Its Goals

Where to compete? In what markets will we compete?

How to compete? On what outcome or differentiating characteristic will

we compete? Cost? Quality? Reliability? Delivery? Innovativeness?

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?

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

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Strategy impact on training Strategy impact on training (continued)(continued)

Whether training is:planned and systematically administered, orprovided only when problems occur, orspontaneously 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.

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RolesRoles

Roles are sets of expected behaviorsEmployee roles have changedManager roles must also changeExecutive roles

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The Roles and Duties of Managers in Companies The Roles and Duties of Managers in Companies That Use High-Performance Work PracticesThat Use High-Performance Work Practices

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.

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The Roles and Duties of Managers in Companies The Roles and Duties of Managers in Companies That Use High-Performance Work Practices That Use High-Performance Work Practices (con’td)(con’td)

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. Facilitating Decision-Making Process

Facilitate team decision making. Help team use effective decision-making processes.

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The Roles and Duties of Managers in Companies The Roles and Duties of Managers in Companies That Use High-Performance Work Practices That Use High-Performance Work Practices (con’td)(con’td)

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.

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Organizational Characteristics That Organizational Characteristics That Influence TrainingInfluence Training

Integration of Business Units

Global Presence

Business Conditions

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The Importance of Training Compared to Other The Importance of Training Compared to Other HRM PracticesHRM Practices

HRM practices are those management activities related to the investment of time, effort, and money devoted to staffing, performance management, training, compensation and benefits

The type of training and resources devoted to training are influenced by the strategy adopted for two HRM practices:StaffingHuman Resource Planning

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Staffing Strategy Influence on TrainingStaffing 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)

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HR Planning Influence on TrainingHR 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, and downward job opportunities that are predicted by the

human resource plan.

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The Broadening of Training’s RoleThe Broadening of Training’s Role

Focus on Teaching Skills and Focus on Teaching Skills and KnowledgeKnowledge

Link Training to Business Link Training to Business NeedsNeeds

Use Training to Create and Use Training to Create and Share KnowledgeShare Knowledge

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Implications of Business Strategy for TrainingImplications of Business Strategy for Training

Strategy Emphasis How Achieved Key Issues Training Implications

Concentration Increase market share

Reduce operating costs

Create market niche

Improve quality

Improve productivity

Customize products

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

Create new products

Joint ownership

Create new jobs

Create new tasks

Innovation

Support high-quality product value

Cultural training

Conflict negotiation skills

Manager training in feedback and communication

Technical competence in jobs

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Implications of Business Strategy for Training Implications of Business Strategy for Training (continued)(continued)

Strategy 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

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Models of Organizing the Training DepartmentModels of Organizing the Training Department

Faculty Model

Customer Model

Matrix Model

Corporate University Model

Virtual Model

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The Faculty ModelThe Faculty Model

S afe tyTra in in g

Q u a lityTra in in g

Tech n o log yan d

C om p u te rS ys tem s

L ead ersh ipD eve lop m en t

S a lesTra in in g

D irec to r o f Tra in in g

Training Specialty Areas

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The Customer ModelThe Customer Model

In fo rm ationS ys tem s

M arke tin g P rod u c tionan d

O p era tion s

F in an ce


Business Functions

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The Matrix ModelThe Matrix Model

S a lesTra in in g

Q u a lityTra in in g

Tech n o log yan d

C om p u te rS ys tem s

S afe tyTra in in g


Business Functions

MarketingProduction

and Operations

Training Specialty Areas

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The Corporate University ModelThe Corporate University Model

Training Advantages

Dissemination of Best Practices

Align Training with Business Needs

Integrate Training Initiatives

Effectively Utilize New Training Methods and Technology

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

New Employee Programs

Product Development

Operations Sales and Marketing

Human Resources

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Virtual Training OrganizationsVirtual Training Organizations Virtual training organizations operate according to

three principles:Employees (not the company) have primary

responsibility for learningThe most effective learning takes place on the job,

not in the classroomFor training to translate into improved job

performance, the manager-employee relationship (not employee-trainer relationship) is critical.

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Virtual Training Organizations Virtual Training Organizations (continued)(continued)

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

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Chapter 2