Chapter

Strategic Training

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 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
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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 Training’s Role
(1) Training Event

Performance
Result (2) Learning
(3) Create and Emphasis
Share Knowledge

Meet Business
Need

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 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

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 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

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 Intellectual Capital

Cognitive Knowledge Advanced Skills

(know what) (know how)

System Understanding Self-Motivated

and Creativity Creativity
(know why) (care why)

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 The Strategic Training and Development
Process:

Strategic
StrategicTraining
Training Training
Trainingand
and Metrics
Metricsthat
thatShow
Show
Business
BusinessStrategy
Strategy and Development
and Development Development
Development
Initiatives Activities Value
ValueofofTraining
Training
Initiatives Activities
 Mission  Diversify the  Use Web-Based  Learning
Learning Portfolio Training
 Values  Performance
 Improve Customer  Make Development Improvement
 Goals Planning Mandatory
Service  Reduced Customer
 Accelerate the Pace  Develop Websites for Complaints
of Employee Knowledge Sharing  Reduced Turnover
Learning  Increase Amount of
Customer Service
 Employee
 Capture and Share Satisfaction
Training
Knowledge

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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 Implications
Diversify the Learning Use new technology for training
Portfolio 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 Quickly identify needs and provide a high-quality learning
Employee 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 Ensure that employees have opportunities to develop
Opportunities and Ensure that employees understand career opportunities
Communicate to and personal growth opportunities
Employees 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 Capture insight and information from knowledgeable
Knowledge employees
Logically organize and store information
Provide methods to make information available
Align Training and Identify needed knowledge, skills, abilities, or
Development with the competencies
Company’s Strategic Ensure that current training and development programs
Direction support the company’s strategic needs

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 Strategic Training and Development
Initiatives and their Implications (4 of 4)
Strategic Training and
Development Initiatives Implications
Ensure That the Work Remove constraints on learning
Environment Supports Dedicate physical space to encourage teamwork,
Learning and Transfer of collaboration, creativity, and knowledge sharing
Training 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: SunU’s Analysis to Align Training
with Business Strategy (1 of 3)
Customers
Customers
Who
Whoare
areour
ourcustomers
customersand
andhow
howdo
dowe
we work
workfor
forthem?
them?

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

Products
Products and
and Services
Services
How
Howdodowe
weensure
ensurethat
thatour
ourproducts
productsand
and services
services meet
meet
strategic
strategicrequirements?
requirements?
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 Example: SunU’s 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
and use
useour
ourknowledge
knowledgein inthese
theseareas?
areas?

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

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 Example: SunU’s Analysis to Align Training
with Business Strategy (3 of 3)

Continuous
Continuous Learning
Learning
How
Howdo
dowe
werecognize
recognizethat
thatlearning
learningatatSun
Sun
Microsystems
Microsystemsisis continuous,
continuous,isisconscious,
conscious,and
andcomes
comes
from
frommany
manysources?
sources?

Results
Results
How
Howdodowe
weobtain
obtainresults
resultsaccording
accordingto
toour
our customers’
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 Business Conditions
Managers
Other HRM Practices
Top Management Support
Extent of Unionization
Integration of Business
Units
Staff Involvement in
Training and
Global Presence 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 company’s 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 Improve quality Skill currency Team building
share Improve productivity Development of Cross-training
Reduced operating Customize products existing work force Specialized programs
costs or services Interpersonal skill training
Create or maintain On-the-job training
market niche

Internal Growth Market development Add distribution Create new jobs Communication of product
Product development channels Create new tasks value
Innovation Expand global Innovation Cultural training
markets Conflict negotiation skills
Joint ventures
Modify existing Manager training in
products feedback and
Create new products communication
Joint ownership 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 Horizontal integration Acquire firms for new Integration Determining capabilities of
(Acquisition) Vertical integration market access Redundancy acquired employees
Concentric Acquire firms to Restructuring Integrating training
diversification supply or buy products systems
Acquire any firm Team building

Disinvestment Retrenchment Reduce costs Efficiency Motivation

Turnaround Reduce assets Goal setting
Divestiture Generate revenue Stress management
Liquidation Redefine goals Time management
Sell off all assets Leadership training
Outplacement assistance
Job-search skills training

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 Models of Organizing the Training Department

Faculty Model
Customer Model

Matrix Model

Corporate University
Model
Virtual Model

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 The Faculty Model

Director
DirectorofofTraining
Training

Safety
Safety Quality
Quality Technology
Technology Leadership
Leadership Sales
Sales
Training
Training Training
Training and
and Development
Development Training
Training
Computer
Computer
Systems
Systems

Training Specialty Areas

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 The Customer Model

Director
Directorof
ofTraining
Training

Information
Information Marketing
Marketing Production
Production Finance
Finance
Systems
Systems and
and
Operations
Operations

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 S a le s Q u a lit y T e c h n o lo g y S a fe ty
Specialty T r a in in g T r a in in g and T r a in in g
Areas C o m p u te r
S y s te m s

Production
Marketing and
Operations

Business Functions

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 The Corporate University Model
Historical Training Leadership Development Programs Training
Problems Advantages
Excess Costs Dissemination of
Best Practices
Poor Delivery and
Product Sales and
Focus Human
Development Operations Marketing Resources

Inconsistent Use of Align Training with

Common Training Business Needs
Practices
Integrate Training
Best Training Initiatives
Practices Not
Effectively Utilize
Shared
New Training
Training Not Methods and
Integrated or Technology
Coordinated 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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