Chapter

2
Strategic
Training

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Introduction: Business Strategy

A plan that integrates the companys 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 companys

activities to reach specific goals
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Strategy impacts training with a strong

influence on determining: (1 of 2)
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 impacts training with a strong

influence on determining: (2 of 2)
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
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Evolution of Trainings Role

Training Event

Create and Share

Knowledge

Performance
Result

Learning
Emphasis

Business Need

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Evolution of Trainings 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

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Evolution of Trainings Role: Knowledge

Explicit Knowledge:

Human and Social

Knowledge:
What individuals or teams
of employees know or
know how to do

Knowledge that can be

formalized, codified, and
communicated

Tacit Knowledge:
Structured Knowledge:
Company rules, processes,
tools, and routines

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Personal knowledge based

on individual experience
Difficult to explain to
others

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Intellectual Capital

Cognitive Knowledge
(know what)

Advanced Skills
(know how)

System Understanding
and Creativity
(know why)

Self-Motivated
Creativity
(care why)

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The Strategic Training and Development

Process:

Business
BusinessStrategy
Strategy

Mission

Values

Goals

Strategic
StrategicTraining
Training
and
Development
and Development
Initiatives
Initiatives

McGraw-Hill/Irwin

Training
Trainingand
and
Development
Development
Activities
Activities

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

Metrics
Metricsthat
thatShow
Show
Value
ValueofofTraining
Training

Learning

Performance
Improvement

Reduced Customer
Complaints

Reduced Turnover

Employee
Satisfaction

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Decisions a company must make about how

to compete to reach its goals:
1. Where to compete?
In what markets, industries, products will we
compete?

2. How to compete?
On what outcome or differentiating characteristic will
we compete?

3. 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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Strategic Training and Development

Initiatives and their Implications (1 of 4)
Strategic Training and
Development Initiatives
Diversify the Learning
Portfolio

Implications
Use new technology for training
Facilitate informal learning
Provide more personalized learning opportunities

Expand Who is Trained

Train customers, suppliers, and employees

Offer more learning opportunities for non-managerial
employees

Accelerate the Pace of

Employee Learning

Quickly identify needs and provide a high-quality learning

solution
Reduce the time to develop training programs
Facilitate access to learning resources on an as-needed
basis

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Strategic Training and Development

Initiatives and their Implications (2 of 4)
Strategic Training and
Development Initiatives

Implications

Improve Customer Service

Ensure that employees have product and service

knowledge
Ensure that employees have skills needed to interact with
customers
Ensure that employees understand their roles and
decision-making authority

Provide Development
Opportunities and
Communicate to
Employees

Ensure that employees have opportunities to develop

Ensure that employees understand career opportunities
and personal growth opportunities
Ensure that training and development addresses
employees needs in current job as well as growth
opportunities

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Strategic Training and Development

Initiatives and their Implications (3 of 4)
Strategic Training and
Development Initiatives

Implications

Capture and Share

Knowledge

Capture insight and information from knowledgeable

employees
Logically organize and store information
Provide methods to make information available

Align Training and

Development with the
Companys Strategic
Direction

Identify needed knowledge, skills, abilities, or

competencies
Ensure that current training and development programs
support the companys strategic needs

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Strategic Training and Development

Initiatives and their Implications (4 of 4)
Strategic Training and
Development Initiatives
Ensure That the Work
Environment Supports
Learning and Transfer of
Training

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Implications
Remove constraints on learning
Dedicate physical space to encourage teamwork,
collaboration, creativity, and knowledge sharing
Ensure that employees understand the importance of
learning
Ensure that managers and peers are supportive of training,
development, and learning

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Example: SunUs Analysis to Align Training

with Business Strategy (1 of 3)
Customers
Customers
Who
Whoare
areour
ourcustomers
customersand
andhow
howdo
dowe
wework
workfor
forthem?
them?

Organization
Organization
What
Whatisisthe
thenature
natureof
ofpractices
practicesrequired
requiredto
tocomplete
completeour
our
mission?
mission?

Products
Products and
and Services
Services
How
Howdo
dowe
weensure
ensurethat
thatour
ourproducts
productsand
andservices
servicesmeet
meet
strategic
strategicrequirements?
requirements?
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Example: SunUs Analysis to Align Training

with Business Strategy (2 of 3)
Research
Research and
and Development
Development
How
Howdo
dowe
westay
staycurrent
currentin
inthe
thetraining
trainingand
andlearning
learning
fields
fieldsand
anduse
useour
ourknowledge
knowledgein
inthese
theseareas?
areas?

Business
Business Systems
Systems
What
Whatare
arethe
theprocesses,
processes,products,
products,tools,
tools,and
andprocedures
procedures
required
requiredto
toachieve
achieveour
ourgoals?
goals?

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Example: SunUs Analysis to Align Training

with Business Strategy (3 of 3)
Continuous
Continuous Learning
Learning
How
Howdo
dowe
werecognize
recognizethat
thatlearning
learningatatSun
SunMicrosystems
Microsystems
isiscontinuous,
continuous,isisconscious,
conscious,and
andcomes
comesfrom
frommany
many
sources?
sources?

Results
Results
How
Howdo
dowe
weobtain
obtainresults
resultsaccording
accordingto
toour
ourcustomers
customers
standards?
standards?

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Metrics and Training: Balanced Scorecard

(1 of 2)

Measurements that look at performance from the

perspective of:
internal customers
external customers
employees
shareholders

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Metrics and Training: Balanced Scorecard

(2 of 2)

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)

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Organizational Characteristics That

Influence Training
Roles of Employees and
Managers

Business Conditions
Other HRM Practices

Top Management Support

Extent of Unionization
Integration of Business
Units
Global Presence
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Staff Involvement in
Training and
Development

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The Roles and Duties of Managers in Companies

That Use High-Performance Work Practices (1 of 3)

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

That Use High-Performance Work Practices (2 of 3)

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

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The Roles and Duties of Managers in Companies

That Use High-Performance Work Practices (3 of 3)

Facilitating Decision-Making Process

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

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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Other HRM Practices

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

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Staffing Strategy Influence on Training

Two aspects of a companys 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 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
downward job opportunities that are predicted by the
human resource plan
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Implications of Business Strategy for Training

(1 of 2)
Strategy

Emphasis

How Achieved

Key Issues

Training Implications

Concentration

Increased market
share
Reduced operating
costs
Create or maintain
market niche

Improve quality
Improve
productivity
Customize products
or services

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
Modify existing
products
Create new
products
Joint ownership

Create new jobs

Create new tasks
Innovation

Communication of
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

(2 of 2)
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 Department

Faculty Model
Customer Model

Matrix Model

Virtual Model

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Corporate
University Model

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The Faculty Model

Director
DirectorofofTraining
Training
Safety
Safety
Training
Training

Quality
Quality
Training
Training

Technology
Technology
and
and
Computer
Computer
Systems
Systems

Leadership
Leadership
Development
Development

Sales
Sales
Training
Training

Training Specialty Areas

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The Customer Model

Director
DirectorofofTraining
Training
Information
Information
Systems
Systems

Marketing
Marketing

Production
Production
and
and
Operations
Operations

Finance
Finance

Business Functions

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The Matrix Model

D ir e c t o r o f T r a in in g

Training
Specialty
Areas

S a le s
T r a in in g

Q u a lit y
T r a in in g

Marketing

T e c h n o lo g y
and
C o m p u te r
S y s te m s

S a fe ty
T r a in in g

Production
and
Operations

Business Functions
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The Corporate University Model

Historical Training
Problems

Leadership Development Programs

Dissemination of
Best Practices

Excess Costs
Poor Delivery and
Focus

Training
Advantages

Product
Sales and
Development Operations Marketing

Human
Resources

Inconsistent Use
of Common
Training Practices

Align Training
with Business
Needs

Best Training
Practices Not
Shared

Integrate
Training
Initiatives

Training Not
Integrated or
Coordinated

Effectively Utilize
New Training
Methods and
Technology

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New Employee Programs

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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

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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
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Tactics to Market the Training Function

(1 of 2)

Involve the target audience in developing the

training or learning effort
Demonstrate how a training and development
program can be used to solve specific needs
Showcase an example of how training has been
used within the company to solve specific
business needs
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Tactics to Market the Training Function

(2 of 2)

Identify a champion who actively supports

training
Listen and act on feedback received from clients,
managers, and employees
Advertise on e-mail, on company websites, in
employee break areas
Designate someone in the training function as an
account representative between the training
designer and internal customer
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