2-2IntroductionBusiness 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.
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.
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.
2-6The Evolution of Training’s RoleLearning – 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.
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.
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.
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.
2-10Figure 2.2 - The Strategic Trainingand Development Process
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.
2-12The Strategic Training andDevelopment Process (cont.)Strategic training and developmentinitiatives – learning-related actions thata company should take to help it achieveits business strategy.
2-13Table 2.2 - Strategic Training andDevelopment Initiatives and Their Implications
2-14Table 2.3 - Questions to Ask to DevelopStrategic Training and Development Initiatives
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.
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 functionsIt considers four perspectives: customer,internal, innovation and learning, andfinancial.
2-17Table 2.6 - The Roles and Duties of Managers inCompanies That Use High-Performance WorkPractices
2-18Organizational CharacteristicsThat Influence TrainingTop management supportThe 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.
2-19Organizational CharacteristicsThat Influence Training (cont.)Human resource management (HRM)practices – the management activitiesrelated to investments, staffingperformance management, training, andcompensation and benefits.
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.
2-21Figure 2.4 - Implications ofStaffing Strategy for Training
2-22Organizational CharacteristicsThat Influence Training (cont.)Extent of unionizationUnions interest in training has resulted injoint union-management programs designedto help employees prepare for new jobs.Staff involvement in training anddevelopmentIf managers are not involved in the trainingprocess, training may be unrelated tobusiness needs.
2-23Organizational CharacteristicsThat Influence Training (cont.)Staff involvement in training anddevelopmentIf 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.
2-24Table 2.7 - Implications ofBusiness Strategy for Training
2-25Table 2.7 - Implications ofBusiness Strategy for Training
2-26Table 2.7 - Implications ofBusiness Strategy for Training
2-27Centralized 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
2-28Faculty modelLook 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.)
2-29Customer modelResponsible 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.)
2-30Matrix modelThe 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.)
2-31Figure 2.8 - The CorporateUniversity Model
2-32The 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.)
2-33Table 2.8 - Comparison between a Business-Embedded Training Organizationand a Traditional Training Department
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.
2-36Outsourcing – 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
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.
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.
2-39Table 2.9 - Questions to AskWhen Considering Outsourcing