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  1. 1. Chapter 2Strategic TrainingCopyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
  2. 2. 2-2IntroductionBusiness strategy – a plan thatintegrates the companys goals, policies,and actions.The strategy influences how the companyuses:physical capital, financial capital, and humancapital.Goals – what the company hopes toachieve in the medium- and long-termfuture.
  3. 3. 2-3Introduction (cont.)Strategy has a particularly stronginfluence on determining:The amount of training devoted to current orfuture job skills.The extent to which training is customized forthe particular needs of an employee or isdeveloped based on the needs of a team,unit, or division.Whether training is restricted to specificgroups of employees or open to allemployees.
  4. 4. 2-4Introduction (cont.)Strategy has a particularly stronginfluence on determining:Whether training is planned andsystematically administered, provided onlywhen problems occur, or developedspontaneously as a reaction to whatcompetitors are doing.The importance placed on training comparedto other human resource managementpractices such as selection and compensation.
  5. 5. 2-5Figure 2.1 - Evolution ofTrainings Role
  6. 6. 2-6The Evolution of Training’s RoleLearning – the acquisition of knowledgeby individual employees or groups ofemployees who are willing to apply thatknowledge in their jobs in makingdecisions and accomplishing tasks for thecompany.Knowledge – what individuals or teamsof employees know as well as companyrules, processes, tools, and routines.It is either tacit knowledge or explicitknowledge.
  7. 7. 2-7The Evolution of Training’s Role(cont.)Explicit knowledge – knowledge thatcan be formalized, codified, andcommunicated.Tacit knowledge – personal knowledgebased on individual experience that isdifficult to explain to others.
  8. 8. 2-8The Evolution of Training’s Role(cont.)Key capabilities needed to implementlearning strategies:Alignment of learning goals to the businessgoals.Measurement of the overall business impactof the learning function.Movement of learning outside the company toinclude customers, vendors, and suppliers.A focus on developing competencies for themost critical jobs.
  9. 9. 2-9The Evolution of Training’s Role(cont.)Key capabilities needed to implementlearning strategies:Integration of learning with other humanresource functions such as knowledgemanagement, performance support, andtalent management.Training delivery approaches that includeclassroom as well as e-learning.Design and delivery of leadershipdevelopment courses.
  10. 10. 2-10Figure 2.2 - The Strategic Trainingand Development Process
  11. 11. 2-11The Strategic Training andDevelopment Process Mission – the companys reason for existing. Vision – the picture of the future that thecompany wants to achieve. Values – what the company stands for. SWOT analysis – an analysis of the companysoperating environment to identify opportunitiesand threats as well as an internal analysis of thecompanys strengths and weaknesses. The company has to consider its competition.
  12. 12. 2-12The Strategic Training andDevelopment Process (cont.)Strategic training and developmentinitiatives – learning-related actions thata company should take to help it achieveits business strategy.
  13. 13. 2-13Table 2.2 - Strategic Training andDevelopment Initiatives and Their Implications
  14. 14. 2-14Table 2.3 - Questions to Ask to DevelopStrategic Training and Development Initiatives
  15. 15. 2-15The Strategic Training andDevelopment Process (cont.)Metrics are used to identify:trainees satisfaction with the trainingprogram.whether the trainees knowledge, skill, ability,or attitudes changed as a result of programparticipation.whether the program resulted in business-related outcomes for the company.
  16. 16. 2-16The Strategic Training andDevelopment Process (cont.)Balance scorecard – means ofperformance measurement that providesmanagers with a chance to look at theoverall company performance or theperformance of departments or functionsIt considers four perspectives: customer,internal, innovation and learning, andfinancial.
  17. 17. 2-17Table 2.6 - The Roles and Duties of Managers inCompanies That Use High-Performance WorkPractices
  18. 18. 2-18Organizational CharacteristicsThat Influence TrainingTop management supportThe CEO is responsible for vision, and being asponsor governor, faculty, learner, andmarketing agent.The degree to which a companys units orbusinesses are integrated affects the kindof training that takes place.Global presence.Business conditions.
  19. 19. 2-19Organizational CharacteristicsThat Influence Training (cont.)Human resource management (HRM)practices – the management activitiesrelated to investments, staffingperformance management, training, andcompensation and benefits.
  20. 20. 2-20Organizational CharacteristicsThat Influence Training (cont.)Staffing strategy – the companysdecisions regarding where to findemployees, how to select them, and thedesired mix of employee skills andstatuses.Human resource planning –identification, analysis, forecasting, andplanning of changes needed in the humanresource area to help the company meetchanging business conditions.
  21. 21. 2-21Figure 2.4 - Implications ofStaffing Strategy for Training
  22. 22. 2-22Organizational CharacteristicsThat Influence Training (cont.)Extent of unionizationUnions interest in training has resulted injoint union-management programs designedto help employees prepare for new jobs.Staff involvement in training anddevelopmentIf managers are not involved in the trainingprocess, training may be unrelated tobusiness needs.
  23. 23. 2-23Organizational CharacteristicsThat Influence Training (cont.)Staff involvement in training anddevelopmentIf line managers are aware of whatdevelopment activity can achieve, they will bemore willing to become involved in it.They will also become more involved in the trainingprocess if they are rewarded for participating.An emerging trend is that companies expectemployees to initiate the training process.
  24. 24. 2-24Table 2.7 - Implications ofBusiness Strategy for Training
  25. 25. 2-25Table 2.7 - Implications ofBusiness Strategy for Training
  26. 26. 2-26Table 2.7 - Implications ofBusiness Strategy for Training
  27. 27. 2-27Centralized training - training anddevelopment programs, resources, andprofessionals are primarily housed in onelocation and decisions about traininginvestment, programs, and deliverymethods are made from that department.It helps companies better integrateprograms for developing leaders andmanaging talent with training andlearning during times of change.Models of Organizing the TrainingDepartment
  28. 28. 2-28Faculty modelLook a lot like the structure of a college.Training staff are experts in the areas inwhich they train.The training departments plans are easilydetermined by staff expertise.The training function may not meet the needsof the organization.Trainers may be unaware of businessproblems or unwilling to adapt materials to fita business need.Models of Organizing the TrainingDepartment (cont.)
  29. 29. 2-29Customer modelResponsible for the training needs of onedivision or function of the company.Training programs are developed more in linewith the particular needs of a business group.Trainers are expected to be aware of businessneeds and to update courses and content toreflect them.Involves considerable time, programs mayvary greatly in effectiveness, and design maybe poor.Models of Organizing the TrainingDepartment (cont.)
  30. 30. 2-30Matrix modelThe trainer has the responsibility of beingboth a training expert and a functional expert.It helps ensure that training is linked to theneeds of the business.Trainer gains expertise in understanding aspecific business function.Trainers will have more time demands andconflicts because they report to twomanagers.Models of Organizing the TrainingDepartment (cont.)
  31. 31. 2-31Figure 2.8 - The CorporateUniversity Model
  32. 32. 2-32The business embedded (BE) model ischaracterized by five competenciesstrategic direction, product design,structural versatility, product delivery,and accountability for result.It is customer-focused when compared tothe traditional training department.Models of Organizing the TrainingDepartment (cont.)
  33. 33. 2-33Table 2.8 - Comparison between a Business-Embedded Training Organizationand a Traditional Training Department
  34. 34. 2-34Marketing the Training Function
  35. 35. 2-35Marketing the Training Function(cont.)Companies sell training services for thefollowing reasons:Some businesses are so good at a particularaspect of their operation that other companiesare asking for their expertise.Other companies aim training at their owncustomers or dealers.In some cases, the training department sellsunused seats in training programs or e-learning courses.
  36. 36. 2-36Outsourcing – the use of an outsidecompany that takes completeresponsibility and control of some trainingor development activities or that takesover all or most of a companys trainingincluding administration, design, delivery,and development.Outsourcing Training
  37. 37. 2-37Outsourcing Training (cont.)Why companies outsource training:Cost savings.Time savings that allow a company to focuson business strategy.Improvements in compliance and accuracy intraining mandated to comply with federal,state, or local rules.The lack of capability within the company tomeet learning demands.The desire to access best training practices.
  38. 38. 2-38Outsourcing Training (cont.)Two reasons companies do not outsourcetheir training are:The inability of outsourcing providers to meetcompany needs.Companies desire to maintain control over allaspects of training and development,especially delivery and learning content.
  39. 39. 2-39Table 2.9 - Questions to AskWhen Considering Outsourcing
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