MODULE II -

STRATEGIC
TRAINING
(A module — compiled and summarized contents are based from the book
titled Employee Training and Development, 7e by Raymond A. Noe, 2017 and
other electronic references for classroom discussion only.)

HRM 305
Training &
Development
Ms. Jennifer Buenviaje Atienza
INSTRUCTOR
 MODULE INTRODUCTION

Business strategies have become part of any business enterprise to gain higher
market share. These strategies are planned, implemented and evaluated with the
aim to maintain the company’s competitive advantage. Thus, the human resource
strategies, particularly the employee training and development, must also be
aligned in the organizational strategies. This module deals on the importance of
linking the training function to the company’s strategy. It also targets to see the
trends in the changing role of training and gives the students opportunity develop
a marketing campaign for a training course or program.

TRAINING AND BUSINESS STRATEGY

Guided by the organization's vision, goals reflect what the company wants to
achieve in particular period of time. Business strategies and goals have direct and
indirect link with employee training. Training generally results to target skills
required of an employee to perform his/her job. Employee performance thus
affects the organizational performance. Definitely, business strategy has a major
impact on the type and amount of training being delivered and it shall be carefully
planned as to whether resources including money, trainers’ time, and program
development should be invested to employee training. Likewise, training is
influenced by the business strategies in terms of type, level, and mix of skills
needed in the company through it employees.

topic outcome
~DESCRIBE THE STRATEGIC TRAINING AND
DEVELOPMENT PROCESS AND ITS
IMPORTANCE IN THE ORGANIZATION
BUSINESS STRATEGY
a plan crafted by the organizations to
integrate the organizational goals,
policies, and actions.
HRM 305 - TRAINING AND DEVELOPMENT
THE LEARNING ORGANIZATION

LEARNING ORGANIZATION
defined by Noe (2017) as a company having
a capacity to learn, adapt and change.

The following are the essential features of a learning organization with emphasis
on knowledge management in individual, group and organizational levels.

Supportive Learning Environment

EMPLOYEES FEEL SAFE EXPRESSING THEIR THOUGHTS ABOUT WORK,

01
ASKING QUESTIONS, DISAGREEING WITH MANAGERS, AND ADMITTING

MISTAKES.

DIFFERENT FUNCTIONAL AND CULTURAL PERSPECTIVES ARE

APPRECIATED.

EMPLOYEES ARE ENCOURAGED TO TAKE RISKS, INNOVATE, AND

EXPLORE THE UNTESTED AND UNKNOWN, SUCH AS TRYING

NEW PROCESSES AND DEVELOPING NEW PRODUCTS AND SERVICES.

THOUGHTFUL REVIEW OF THE COMPANY’S PROCESSES IS

ENCOURAGED.

02 Learning Processes and Practices

• KNOWLEDGE

APPLICATION
CREATION,

ARE PRACTICED.
DISSEMINATION, SHARING, AND

• SYSTEMS ARE DEVELOPED FOR CREATING, CAPTURING, AND

SHARING KNOWLEDGE.

Managers Reinforce Learning

03
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.

Source: . Edmonson, “Strategies for Learning from Failure”, Harvard Business Review (April 2011): 48–55; F. Gino and G. Pisano, “Why Leaders Don’t
Learn From Success,” Harvard Business Review (April 2011): 68–74. Based on D. Garvin, A. Edmondson, and F. Gino, “Is Yours a Learning
Organization?” Harvard Business Review (March 2008): 109–116.

HRM 305 - TRAINING AND DEVELOPMENT

STRATEGIC TRAINING AND
DEVELOPMENT PROCESS

The strategic training and development process includes four steps.

Business Strategy Identification and Formulation

01 STRATEGY

MISSION,

STRATEGIC
FORMULATION

GOALS,

CHOICE
SWOT -
INCLUDES

INTERNAL
THE

AND
FIVE MAJOR

EXTERNAL
COMPONENTS

ANALYSIS AND
-

MISSION VISION
purpose / reason why a company exists what the company wants to achieve in the
future

GOALS VALUES
milestones to the achievement of vision, what the company stands for
medium to long term

SWOT ANALYSIS STRATEGIC CHOICE

environmental scanning ; analysis of internal
represents the strategy believed to be the best
environment- strengths and weaknesses, and
alternative to achieve the company goals.
external - opportunities and threats

Identification of Strategic Training and Development

02 Initiatives aligned to Business Strategy
THESE LEARNING-RELATED ACTIONS ARE TAKEN BY THE

ORGANIZATIONS TO SUPPORT THEIR BUSINESS STRATEGIES.

STRATEGIC TRAINING AND DEVELOPMENT INITIATIVES MUST BE

BASED ON BUSINESS ENVIRONMENT, CONSIDERING THE GOALS

AND RESOURCES. THESE THEN SERVE AS ROADMAP IN T&D

ACTIVITIES TOWARDS ACHIEVEMENT OF COMPANY GOALS.

STRATEGIC TRAINING AND DEVELOPMENT INITIATIVES AND THEIR

IMPLICATIONS FOR TRAINING PRACTICES INVOLVES: (1)

DIVERSIFYING THE LEARNING PORTFOLIO; (2) EXPAND WHO IS

TRAINED; (3) ACCELERATE THE PACE OF EMPLOYEE LEARNING;

(4) PROVIDE THE BEST POSSIBLE CUSTOMER SERVICE; (5)

PROVIDING DEVELOPMENT OPPORTUNITIES; (6) CREATING AND

SHARING KNOWLEDGE; (7) ALIGNING TRAINING AND

DEVELOPMENT; (8) A SUPPORTIVE WORK ENVIRONMENT.

HRM 305 - TRAINING AND DEVELOPMENT

STRATEGIC TRAINING AND
DEVELOPMENT PROCESS

Below is Exhibit 2.1. This shows strategic training and development initiatives
and their implications for training practices.

EXHIBIT 2.1

Strategic Training and Development Initiatives and Their Implications

HRM 305 - TRAINING AND DEVELOPMENT

STRATEGIC TRAINING AND
DEVELOPMENT PROCESS

Training and Development Activities

03 THE THIRD

TRAINING
STEP

AND
FOCUSES

DEVELOPMENT
ON TRANSLATING

INITIATIVES TO
THE STRATEGIC

CONCRETE

TRAINING AND DEVELOPMENT ACTIVITIES.

THESE ACTIVITIES INCLUDE DEVELOPING 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.

Identification of Metrics that Shows Value of

04 Training
THIS IS THE FINAL STEP IN THE PROCESS WHICH PAYS

EMPHASIS ON IDENTIFYING THE SPECIFIC METRICS TO

MEASURE THE OVERALL VALUE OF TRAINING

THE FOLLOWING ARE THE METRICS WHICH ARE OFTEN USED

TO IDENTIFY TRAINING SUCCESS OR EFFECTIVENESS

INCLUDE: (1) TRAINEES’ SATISFACTION WITH THE TRAINING

PROGRAM; (2) WHETHER THE TRAINEES’ KNOWLEDGE, SKILL,

ABILITY, OR ATTITUDES CHANGED AS A RESULT OF

PROGRAM PARTICIPATION; AND (3) WHETHER THE PROGRAM

RESULTED IN BUSINESS-RELATED OUTCOMES FOR THE

COMPANY.

IT IS IMPORTANT TO NOTE THAT BUSINESS-RELATED

OUTCOMES MUST BE DIRECTLY LINKED TO THE BUSINESS

STRATEGY AND GOALS. SOME COMPANIES USE THE

BALANCED SCORECARD AS A PROCESS TO EVALUATE ALL

ASPECTS OF THE BUSINESS.

HRM 305 - TRAINING AND DEVELOPMENT

 STRATEGIC TRAINING AND
DEVELOPMENT PROCESS

Shown in Exhibit 2.2. is the strategic training and development process, while
Exhibit 2.3. shows how Mike's Carwash, a private company adopts the
aforementioned process. Apparently, Mike's Carwash directly linked its training
and development initiatives and activities to their business strategy. Further, it
includes specific metrics that measures the training effectiveness.

EXHIBIT 2.2

The Strategic Training and Development Process

EXHIBIT 2.3

How Mike's Carwash links T&D to Business Strategy

HRM 305 - TRAINING AND DEVELOPMENT

TRAINING NEEDS IN DIFFERENT
BUSINESS STRATEGIES

In support to existing business strategies, training needs vary. Each type of

strategy has its own focus which consequently requires different trainings. The
following are four types of business strategies with their specific highlights as to
training implications.
A concentration strategy focuses on increasing market share, reducing costs,
or creating and maintaining a market niche for products and services. Training
implications include team building, cross-training, specialized programs,
interpersonal skill training, and on-the-job training.
An internal growth strategy focuses on new market and product
development, innovation, and joint ventures. Training needs include
promoting high quality; cultural training; promoting a company culture that
values creative thinking; technical skills training; and training in providing
feedback for managers.
An external growth strategy focuses on acquiring vendors and suppliers or
buying businesses to enable the company to expand into new markets.
Training needs include conflict negotiation training; analysis of employee
capabilities in acquired firms; the integration of multiple training systems; the
integration of firms’ methods and procedures; and team building.
A divestment strategy focuses on liquidation and divestiture of businesses.
Training implications include motivation, goal setting, time management,
stress management, and cross training; leadership training; interpersonal
communications training; outplacement assistance; and job search training.

Details on the implications of business strategy for training are reflected on

Exhibit 2.4.

HRM 305 - TRAINING AND DEVELOPMENT

TRAINING NEEDS IN DIFFERENT
BUSINESS STRATEGIES

EXHIBIT 2.4

Implications of Business Strategy for Training

HRM 305 - TRAINING AND DEVELOPMENT

MODELS OF ORGANIZING THE
TRAINING DEPARTMENT

To support the business strategies, companies typically organize their training

department or learning function in such a way that it could help meet their needs.
Although organizations do not solely centralized or decentralized the learning
function, centralized training is advantageous. This results to a stronger alignment
with business strategy. Centralized training is one in which the programs and
resources are housed in one location. Decisions are likewise made through one
department.

Strategic organization of training department usually involves an approach in which

some learning is provided by a corporate learning function or corporate university
and others learning is customized, developed, and delivered specifically for function,
product lines or location needs (business-embedded).

While a training department an operational approach, corporate university is set at

strategic level where it includes employees, managers and stakeholders outside the
company, including community colleges, universities, high schools, and grade
schools. One popular example of the organization using this approach is McDonald's
- Hamburger University.

A business-embedded model on the other hand is a model that is considered

customer-centric. This means that both trainees and managers are viewed as
customers who make decisions to send employees to training, and senior-level
managers as customers who allocate money for training. characterized by five
competencies: strategic direction, product design, structural versatility, product
delivery, and accountability for results. Strategic direction includes a clearly
described goal and direction to the department, as well as a customer focus that
includes customizing training to meet customer needs and continuously improving
programs. Everyone involved in the training process communicate and share
resources.

CORPORATE UNIVERSITY
"It is not a place, a building or a gimmick. A corporate university is an educational
entity that is a strategic tool designed to assist its parent organization in achieving
its mission by conducting activities that cultivate individual and organizational
learning, knowledge, and wisdom.”
--Mark Allen, Ph.D

HRM 305 - TRAINING AND DEVELOPMENT

 LEARNING, TRAINING, AND
DEVELOPMENT FROM A CHANGE
MODEL PERSPECTIVE

For a change to occur, Noe (2017) has identified four conditions:

(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.

Basically, change is a process which is based on the interaction of task, employees, formal
organizational arrangements and informal organization. There are four change related
problems that should be addressed prior to training program execution. These include
resistance to change, control, power and task redefinition.

1. Resistance to change refers to managers’ and employees’ unwillingness to change.

Managers and employees may be anxious about change, feel that they will be
unable to cope, value the current training practice, or do not understand the value
zof the new practice.
2. Control relates change to managers’ and employees’ ability to obtain and distribute
valuable resources such as data, information, or money. Changes can cause
managers and employees to have less control over resources.
3. Power refers to the ability to influence others. Managers may lose the ability to
influence employees as employees gain access to databases and other
information, thus getting more autonomy to deliver products and services.
4. Task redefinition creates changes in the manager and employee roles and job
responsibilities.

MARKETING TRAINING AND

CREATING A BRAND

Even though training has been recognized significant to achievement of company goals,
there are still a number of employees who do not realize its value. Hence, internal
marketing of training serves as a tool to excite managers and employees about training
and learning. Further, marketing, particularly the training brand is important for the
successful adoption of new training programs by helping to overcome resistance to
change, especially misconceptions about the value of training. Noe (2017) defines brand as
a look and feeling of the training function that is used to create expectations for its
customers.

HRM 305 - TRAINING AND DEVELOPMENT

 LEARNING, TRAINING, AND
DEVELOPMENT FROM A CHANGE
MODEL PERSPECTIVE

Just like products, advertising training through various platforms like email and company
website is a successful tactic.

Here are the steps on how to build a training

brand. ( Source: Based on A. Hand, “How to
enhance your training brand,” T+D (February
2011): 76–77. )
Ask current “customers” of training, including
managers who purchase or ask for training and
employees who participate in training what
their perceptions are of the brand. For
example, what emotions describe how they feel
about the training brand? What words
summarize their feelings? What conclusions
have they made about doing business with
you? Answers to these questions provide
information regarding the strength of the
training brand and if it is being perceived
positively or as intended.
Define how you want to be perceived by
current and future customers.
Identify factors that influence your customer’s
perceptions of the training function.
Review each of the factors to determine if it is
supporting and communicating the brand to
your customers in a way that you intended.
Make changes so that each factor is supporting
the brand.
Get customers feedback at each step of this
process (define the brand, identify factors,
suggest changes, etc.).
When interacting with customers, create an
experience that supports and identifies the
brand.

HRM 305 - TRAINING AND DEVELOPMENT

OUTSOURCING TRAINING

Outsourcing refers to the use of an outside company (an external services firm) that takes
complete responsibility and control of some training or development activities or that
takes over all or most of a company’s training including administration, design, delivery,
and development. Business process outsourcing refers to the outsourcing of any business
process, such as human resource management, production, or training.

Why outsource training

COST SAVINGS.

TIME SAVINGS THAT ALLOW A COMPANY TO FOCUS ON

BUSINESS STRATEGY.

IMPROVEMENTS IN COMPLIANCE AND ACCURACY IN

TRAINING MANDATED TO COMPLY WITH FEDERAL, STATE, OR

LOCAL RULES.

THE LACK OF CAPABILITY WITHIN THE COMPANY TO MEET

LEARNING DEMANDS.

THE DESIRE TO ACCESS BEST TRAINING PRACTICES.

Why some companies do not outsource their training

THE INABILITY OF OUTSOURCING PROVIDERS TO MEET

COMPANY NEEDS.

COMPANIES’ DESIRE TO MAINTAIN CONTROL OVER ALL

ASPECTS OF TRAINING AND DEVELOPMENT, ESPECIALLY

DELIVERY AND LEARNING CONTENT.

HRM 305 - TRAINING AND DEVELOPMENT

 END OF MODULE TEST

Part I. Training Program Marketing Campaign

1. Assemble in group with at least five members. Brainstorm with your
group mates on the creation of a training program marketing campaign.
Follow the steps in building a training brand. Be ready to share your
output in class.

Part II. The Corporate University

1. Surf the net and pay time to read and watch materials on McDonald's
Hamburger University. Then answer the following questions.
a. Does Hamburger University support the company’s business?Explain
why or why not.
b. Identify the learning resources available at Hamburger University and
how they contribute to the business strategy.

(A module — contents compiled and summarized based from the book

Employee Training and Development, 7e by Raymond A. Noe, 2017 and other
electronic references for classroom discussion only.)

HRM 305 - TRAINING AND DEVELOPMENT