HRM104

ROOM THREE

ESPINA
EUSEBIO
FLORES
GALLEGO
HULGUIN
INTOMAN
JUMAWAN
 OPENING
REMARKS
PROF. KENNETH L. SANIDO, DHRM, CHRP
ICE
BREAKER
DAI ALI DIRI,
SABAK
DADDY BIH
 DAI ALI DIRI,
SABAK
DADDY BIH

• The participants will form an inner and outer circle. 5 players for
the inner circle and 6 players for the latter.
• Next, outer players march and dance around the inner players as
someone plays the music.
• When the music stops, the outside player attempts to be carried
back by the inner players.
• Finally, the player who is unable to be carried is removed from the
game, as is one of the inner players.
• Repeat the steps until only one remains.
 HRM104
ROOM THREE

ESPINA
EUSEBIO
FLORES
GALLEGO
HULGUIN
INTOMAN
JUMAWAN
 OBJECTIVES:
• Discuss how business strategy influences the type and
amount of training in a company.
• Describe the strategic training and development process.
• Discuss how a company’s staffing and human resource
planning strategies influence training.
• Explain the training needs created by concentration, internal
growth, external growth, and disinvestment business
strategies.
• Discuss the advantages and disadvantages of centralizing
the training function.
• Explain a corporate university and its benefits.
• Discuss the strengths of a business embedded learning
function.
• Discuss how to create a learning or training brand and why it
is important.
• Develop a marketing campaign for a training course or
program.
Introduction
& Learning
as Strategic
Focus
 BUSINESS STRATEGY
Integrates the company’s goals, policies, and actions.
The strategy influences how the company uses
physical capital (e.g., plants, technology, and
equipment), financial capital (e.g., assets and cash
reserves), and human capital (employees). The
business strategy helps direct the company’s activities
(production, finance, marketing, and human resources)
to reach specific goals. Giving employees opportunities
to learn and develop creates a positive work
environment, which supports the business strategy by
attracting talented employees, as well as motivating
and retaining current employees.
Business strategy has a major impact on the type and
amount of training that occurs and whether resources
(money, trainers’ time, and program development)
should be devoted to training. Also, strategy influences
the type, level, and mix of skills needed in the company.
Strategy has a particularly strong influence on
determining the following:
1. The amount of training devoted to current or future
job skills
2. The extent to which training is customized for the
particular needs of an employee or is developed
based on the needs of a team, unit, or division
3. Whether training is restricted to specific groups of
employees (such as persons identified as having
managerial talent) or open to all employees
4. Whether training is planned and systematically
administered, provided only when problems occur,
or developed spontaneously as a reaction to what
competitors are doing
5. The importance placed on training compared to
other human resource management (HRM)
practices such as selection and compensation
Key Features of a Learning Organization A learning
Supportive Learning Environment organization is a
• Employees feel safe expressing their thoughts about work, asking questions,
disagreeing with managers, and admitting mistakes. company that
• Different functional and cultural perspectives are appreciated. has an enhanced
• Employees are encouraged to take risks, innovate, and explore the untested capacity to
and unknown, such as trying new processes and developing new products
and services.
learn, adapt,
• Thoughtful review of the company’s processes is encouraged. and change.

Learning Processes and Practices

• Knowledge creation, dissemination, sharing, and application are practiced.
• Systems are developed for creating, capturing, and sharing knowledge.

Managers Reinforce Learning

• Managers actively question and listen to employees, encouraging dialogue and
debate.
• Managers are willing to consider alternative points of view.
• Time is devoted to problem identification, learning processes and practices, and post-
performance audits.
• Learning is rewarded, promoted, and supported.

Implications of Learning for Human Capital Development

• There is recognition that to be effective, learning has to be related to helping employee performance improve and the
company achieve its business goals.
• Unpredictability in the business environment in which companies operate will continue to be the norm.
• Tacit knowledge is difficult to acquire in training programs, companies need to support informal learning that occurs
through mentoring, social networks, and job experiences.
• Learning has to be supported not only with physical and technical resources but also psychologically
THE STRATEGIC
TRAINING AND
DEVELOPMENT
PROCESS
The model shows that the process begins with identifying the
business strategy. Next, strategic training and development initiatives
that support the strategy are chosen. Translating these strategic
training and development initiatives into concrete training and
development activities is the next step of the process. The final step
involves identifying measures or metrics. These metrics are used to
determine whether training has helped contribute to goals related to
the business strategy.

STRATEGIC TRAINING AND DEVELOPMENT PROCESS

FORMULATING
BUSINESS
STRATEGY
Five major components are part of developing a new
business strategy or changing an existing one.

1. Mission - a statement of the company’s reason for existing.

Vision - is the picture of the future the company wants to achieve
Values - are what the company stands for.

2. Goals - are what the company hopes to achieve in the medium to

long term; they reflect how the mission will be carried out.

3.External Analysis - involves examining the operating environment

to identify opportunities and threats.

4.Internal Analysis - attempts to identify the company’s strength

and weaknesses.
SWOT Analysis - consists of an internal analysis of strengths and
weaknesses and an external analysis of opportunities and threats to
the company that currently exist or are anticipated.

5.Strategic Choice - represents the strategy believed to be the best

alternative to achieve the company goals. Prior to that, the
company needs to consider how to compete before generating
several alternative business strategies, and making a
strategic choice.
DECISIONS A STRATEGIC TRAINING AND DEVELOPMENT INITIATIVES are learning-related actions that a company
COMPANY MUST should take to help it achieve its business strategy. They provide the company with a road map to
MAKE ABOUT HOW TO guide specific training and development activities. They also show how the training function will help
the company reach its goals.
COMPETE TO REACH
ITS GOALS Diversify the Learning Portfolio Provide Development Opportunities and Communicate with
• Use technology, such as the Internet, for Employees
1. Where to compete? training • Ensure that employees have opportunities to develop
In what markets • Facilitate informal learning • Ensure that employees understand career opportunities and
(industries, products, • Provide more personalized learning personal growth opportunities
etc.) will we compete? opportunities • Ensure that training and development addresses employees’
needs in current job as well as growth opportunities
Expand Who Is Trained
2. How to compete? • Train customers, suppliers, and employees Capture and Share Knowledge
On what outcome or • Offer more learning opportunities to non- • Capture insight and information from knowledgeable
differentiating managerial employees employees
characteristic will we • Organize and store information logically
compete? Cost? Quality? Accelerate the Pace of Employee Learning • Provide methods to make information available
• Quickly identify needs and provide a high-
Reliability? Delivery?
quality learning solution Align Training and Development with the Company’s Direction
Innovativeness? • Reduce the time to develop training • Identify needed knowledge, skills, abilities, or competencies
programs • Ensure that current training and development programs
3. With what will we • Facilitate access to learning resources on an support the company’s strategic needs
compete? as-needed basis
What resources will allow Ensure that the Work Environment Supports Learning and
Improve Customer Service Transfer of Training
us to beat the
• Ensure that employees have product and • Remove constraints to learning, such as lack of time,
competition? How will we service knowledge resources, and equipment
acquire, develop, and • Ensure that employees have skills needed to • Dedicate physical space to encourage teamwork,
deploy those resources interact with customers collaboration, creativity, and knowledge sharing
to compete? • Ensure that employees understand their • Ensure that employees understand the importance of learning
roles and decision-making authority • Ensure that managers and peers are supportive of training,
development, and learning
 Provide Training and Development Activities Linked to
Strategic Training and Development Initiatives

Develop initiatives related to the use of new technology in training, increasing access to
training programs for certain groups of employees, reducing development time,
and developing new or expanded course offerings.

For example, Automatic Data Processing (ADP) provides payroll services, employee benefits administration, and human
capital management solutions for businesses of all sizes. Capturing market share in areas where it competes is part of
ADP’s business strategy.

Identify and Collect Metrics to Show Training Success

How does a company determine whether training and development activities actually contribute to the
business strategy and goals?

This determination involves identifying and collecting metrics, business-level outcomes chosen to
measure the overall value of training or learning initiatives. Examples of metrics include measures of
employee retention, employee engagement, customer service, productivity, and quality.

Training program evaluation

involves measuring trainee satisfaction with the program, assessing improvements in trainee knowledge,
skills, and abilities, or identifying if the program influenced business results such as productivity.
Accenture, a management consulting, technology services and outsourcing company,
collects several different learning delivery metrics. All employees have access to training.
 METRICS focus on results rather than on other outcomes. They are
strategic business-related measures. That is, they are not linked to one
course or program but are chosen to represent the expected value of
several programs or learning initiatives. Cognizant evaluates its learning
efforts using four outcomes or criteria: business impact, employee
satisfaction, business stakeholder satisfaction, and solution effectiveness.

The business-related outcomes should be directly linked to the business strategy and goals.

Example: Business-related outcomes could evaluate customer service, employee satisfaction or engagement, employee turnover,
number of product defects, time spent in product development, number of patents, or time spent filling management positions.

Some companies use the balanced scorecard as a process to evaluate all aspects of the business.

Balanced scorecard— means of performance
measurement that provides managers with a chance to
look at the overall company performance or the
performance of departments or functions (such as
training) from the perspective of internal and external
customers, employees, and shareholders.
The balanced scorecard considers four different
perspectives: customer, internal, innovation and learning,
and financial. The emphasis and type of indicators used to
measure each of these perspectives are based on the
company’s business strategy and goals.
The four perspectives and examples of metrics used to
measure them include:
• Customer (time, quality, performance, service, cost)
• Internal (processes that influence customer satisfaction)
• Innovation and learning (operating efficiency, employee
satisfaction, continuous
• improvement)
• Financial (profitability, growth, shareholder value)
Metrics that might be used to assess training’s
contribution to the balanced scorecard include employees
trained (employees trained divided by total number of
employees), training costs (total training costs divided by
number of employees trained), and training costs per hour
(total training costs divided by total training hours).
 HOW MIKE’S CARWASH LINKS TRAINING
BARILLA’S VISION, MISSION, AND VALUES AND DEVELOPMENT TO BUSINESS
STRATEGY

VISION
“We help people live better by bringing well-being and
the joy of eating into their everyday lives.”

MISSION
• Since 1877, Barilla is the Italian Family Company that
believes food is a joyful convivial experience, is
taste, is a form of sharing and caring.
• Barilla offers delightful and safe products at a great
value.
• Barilla believes in the Italian nutritional model that
puts together superior-quality ingredients and
simple recipes creating unique five-senses
experiences.
• Sense of belonging, courage, and intellectual
curiosity inspire our behaviors and characterize our
people.
• Barilla has always linked its development to
people’s well-being and to the communities in
which it operates.

VALUES
Passion, trust, intellectual curiosity, integrity, courage.
 ROLES OF EMPLOYEES AND MANAGERS

ROLES OF EMPLOYEES ROLES OF MANAGERS

• It influences the focus of training, • Manage individual and team performance.

development, and learning activity.
• Develop employees and encourage
• Traditionally, employees’ roles were to continuous learning.
perform their jobs according to the
managers’ directions. • Plan and allocate resources.

• Employees were not involved in improving • Coordinate activities and interdependent

the quality of the products or services. teams.

• Intellectual capital and high- • Manage group performance.

performance work systems with the use
of teams. • Facilitating decision-making process.

• If employees are responsible for the • Creating and maintaining trust.

quality of products and services, they
need to be trained. • Represent one’s work unit.

TOP MANAGEMENT SUPPORT

The CEO, the top manager in the company, plays a key role in determining the importance of
training and learning. The CEO is responsible for
• Vision • Sponsor • Governor • Subject-matter Expert • Faculty • Learner • Marketing Agent
Integration of Business Units
The degree to which a
company’s units or
businesses are integrated
affects the kind of training
that takes place. In a highly
integrated business,
employees need to
understand other units,
services, and products in the
company.
Global Presence Business Conditions
The development of global When unemployment is
product and service low and/or businesses are
markets is an important growing at a high rate and
challenge. The key need more employees.
challenge is ensuring Companies often find it
learning is effective for all difficult to attract new
employees regardless of employees, find
the language they speak employees with the
or their cultural necessary skills, and retain
background. current employees.
 OTHER HRM PRACTICES
Human Resource Management (HRM) Practices
• Consist of the management activities related to investments (time, effort, and money) in staffing (determining
how many employees are needed, and recruiting and selecting employees), performance management,
training, and compensation and benefits.
• These HRM practices contribute to the attraction, motivation, and retention of human capital (the knowledge,
skills, and abilities embedded in people), which can help a company gain a competitive advantage.

Staffing Strategy
• Staffing strategy Refers to the company’s decisions regarding where to find employees, how to select them,
and the desired mix of employee skills and statuses (temporary, fulltime, etc.). It is important for you to
recognize that training and development and learning opportunities can vary across companies because of
differences in companies’ evaluation of the labor market, their staffing strategy, or the strategic value and
uniqueness of jobs or positions.

Strategic Value of Jobs and Employee Uniqueness

• Another strategic consideration affecting how companies invest its training and development resources is
based on different types of employees. One distinction that some companies make is in training and
development activities for managers and individual contributors. Managers may receive development
opportunities such as job experiences and international assignments that individual contributors do not
because they are being evaluated and prepared for leadership positions in the company. Another way
different types of employees can be identified is based on their strategic value and uniqueness to the
company.
• Uniqueness refers to the extent to which employees are rare and specialized and not highly available in the
labor market. Strategic value refers to employee potential to improve company effectiveness and efficiency.
 Human Resource Planning
• Human resource planning includes the identification, analysis, forecasting, and planning of
changes needed in the human resource area to help the company meet changing business
conditions.44 Human resource planning allows the company to anticipate the movement of
human resources in the company because of turnover, transfers, retirements, or promotions.

Extent of Unionization
• Unions’ interest in training has resulted in joint union-management programs designed to help
employees prepare for new jobs. When companies begin retraining and productivity
improvement efforts without involving unions, the efforts are likely to fail. The unions may see the
programs as just another attempt to make employees work harder without sharing the
productivity gains.

Staff Involvement in Training and Development

• If managers are not involved in the training process (e.g., determining training needs, being used
as trainers), training may be unrelated to business needs. Managers also may not be committed
to ensuring that training is effective (e.g., giving trainees feedback on the job). As a result,
training’s potential impact on helping the company reach its goals may be limited because
managers may feel that training is a “necessary evil” forced on them by the training department
rather than a means of helping them to accomplish business goals.
 TRAINING
NEEDS IN
DIFFERENT
STRATEGIES
 MODELS OF ORGANIZING THE TRAINING DEPARTMENT
Centralized training means that training and development programs,
resources, and professionals are primarily housed in one location and that
decisions about training investment, programs, and delivery methods are
made from that department.

The Corporate University (Corporate Training Universities)

The corporate university includes employees, managers and stakeholders
outside the company, including community colleges, universities, high schools,
and grade schools.
 ARE CORPORATE UNIVERSITIES EFFECTIVE?
Corporate University Xchange surveyed corporate universities at 170 different
companies. The top five organizational goals of corporate universities were to improve
customer service and retention, improve productivity, reduce costs, retain talented
employees, and increase revenue. The survey found that measuring business impact
was a high priority; 70 percent of the companies measured business impact through
product and service quality and customer service, and more than 50 percent
measured reductions in operating costs and increased revenues.

CREATING A CORPORATE UNIVERSITY

First senior managers and business managers form a governing body with the
responsibility of developing a vision for the university.
Second, this vision is fleshed out, and the vision statement is linked to the business
strategy.
Third, the company decides how to fund the university.
Fourth, the company determines the degree to which all training will be centralized.
Fifth, it is important to identify the needs of university “customers,” including employees,
managers, suppliers, and external customers.
Sixth, products and services are developed.
Seventh, the company chooses learning partners, including suppliers, consultants,
colleges, and companies specializing in education.
Eighth, the company develops a strategy for using technology to train more employees
and do so more frequently and more cost-effectively than instructor-led training.
Ninth, learning that occurs as a result of a corporate university is linked to performance
improvement.
 BUSINESS-EMBEDDED LEARNING FUNCTION
business-embedded (BE) learning function is characterized by five
competencies: strategic direction, product design, structural versatility,
product delivery, and accountability for results.

STRATEGIC DIRECTION
Broadly disseminates a clearly articulated mission
Recognizes that its customer base is segmented
Provides customized solutions to its clients’ needs
Understands product life cycles
Organizes its offerings by competencies
Competes for internal customers
PRODUCT DESIGN
Uses benchmarking and other innovative design
Implements strategies to develop products quickly
Involves suppliers strategically
STRUCTURAL VERSATILITY
Employs professionals who serve as product and classroom instructors, managers,
and internal consultants
Uses resources from many areas
Involves line managers in determining the direction of the department’s offerings
and content
PRODUCT DELIVERY
Offers a menu of learning options
Delivers training at the work site
ACCOUNTABILITY FOR RESULTS
Believes that individual employees must take responsibility for their personal growth
Provides follow-up on the job to ensure that learning takes place
Considers the manager the key player in supporting learning
Evaluates the strategic effects of training and it’s bottom-line results
Guarantees that training will improve performance
CURRENT PRACTICE: THE BE MODEL WITH
CENTRALIZED TRAINING

This approach allows the company to gain the benefits

of centralized training but at the same time ensure that
training can provide programs, content, and delivery
methods that meet the needs of specific businesses.

Learning, Training, and Development from a Change

Model Perspective
Four conditions are necessary for change to occur:
(1) Employees must understand the reasons for change
and agree with those reasons;
(2) employees must have the skills needed to
implement the change;
(3) employees must see that managers and other
employees in powerful positions support the change;
and
(4) organizational structures, such as compensation
and performance management systems, must support
the change.
 MARKETING TRAINING AND
CREATING A BRAND
What is Marketing?
INTERNAL MARKETING
Internal marketing refers to the Marketing is also important for the successful adoption of new training
promotion of a company's programs by helping to overcome the barriers.
objectives, processes, culture,
brands, products, and services to Here are some successful internal marketing tactics:
employees and staff members 1. Involve the target audience in developing the training or learning
within the organization effort
The crucial part of internal 2. Demonstrate/showcase how a training and development program
marketing involves making can be used to solve specific business needs
employees and managers 3. Identify a “champion” (e.g., a top-level manager) who actively
excited about training and supports training
learning 4. Listen and act on feedback received from clients, managers, and
employees
Despite the increased 5. Advertise on e-mail, on company websites, and in employee break
recognition of the importance of areas
training and learning to 6. Determine what is the numbers FINANCIALLY (allcaps jud ni siyalits)
achieving business goals, many 7. Speak in terms that employees and managers understand.
managers and employees still do 8. Publicize learner or manager success stories or feature those who
not recognize the value of have earned certifications or degrees using newsletters or websites
training.

A brand includes the look and feeling
of the training function that is used
to create expectations for its
customers
HOW TO BUILD A TRAINING BRAND
• Ask for feedback
• Define how you want to be
perceived by current and future
customers conviction
• Identify, review and revise factors
that influence your customer’s
perceptions of the training
function
• When interacting with customers,
create an experience that
supports and identifies the brand
Business Process Outsourcing
Questions to Ask When Considering Outsourcing
(table 2.11)
1. What are the capabilities of your in-house
training function? Does the staff know enough
that you can grow the training skills you need,
or do you need to hire training skills from the
outside?
2. Can your in-house training function take on
additional training responsibilities?
3. Is training key to your company’s strategy? Is it
proprietary?
4. Does your company value its training
organization?
5. Does the training content change rapidly?
6. Are outsourced trainers viewed as experts, or
are they viewed with cynicism?
7. Do you understand the strengths and
weaknesses of your current training
programs?
8. Do you want to outsource the entire training
function?
9. Are executive trying to minimize training’s
impact on your company? Does your
company accept responsibility for building
skills and talent?
10. Is a combination of internal and external
training the best solution?
SUMMARY
QUIZ
20 ITEMS
THANK
YOU