This document discusses how business strategy impacts organizational training. It outlines several models for structuring a training department, including faculty, customer, matrix, and corporate university models. Finally, it describes virtual training organizations, noting that they are customer-focused, provide customized solutions, and involve line managers in training direction and content. Employees have primary responsibility for learning, which occurs most effectively on the job rather than in classrooms.

1. Strategic Training

2. Contents
• Introduction.
• Strategy impacts training with a strong influence
on determining.
• Evolution of training’s role.
• The strategic training and development process.
• Metrics and training: balanced scorecard.
• Organizational characteristics that influence
training.
• Models of organizing the training department.
• Characteristics of virtual training organizations.

3. 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

4. Strategy impacts training with a 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 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

5. Strategy impacts training with a strong
influence on determining
• 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

6. Evolution of Training’s Role

7. 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.

8. Evolution of Training’s Role:
Knowledge
• 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

9. The Strategic Training and Development Process
Business Strategy
Strategic Training
and Development
Initiatives
Training and
Development
Activities
Metrics that Show
Value of Training
 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
 Mission
 Values
 Goals

10. Metrics and Training: Balanced Scorecard
• Measurements that look at performance from
the perspective of:
– internal customers
– external customers
– employees
– shareholders

11. Metrics and Training: Balanced Scorecard
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)

12. Organizational Characteristics That
Influence Training
• 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

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

14. The Faculty Model
Director of Training
Training Specialty Areas
Safety
Training
Quality
Training
Technology
and
Computer
Systems
Leadership
Development
Sales
Training

15. The Customer Model
Director of Training
Business Functions
Information
Systems
Marketing Production
and
Operations
Finance

16. The Matrix Model
Sales
Training
Quality
Training
Technology
and
Computer
Systems
Safety
Training
Director of Training
Marketing
Production
and
Operations
Business Functions
Training
Specialty
Areas

17. 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
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

18. 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

19. 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