CHAPTER 02

STRATEGIC PLANNING,
TRAINING
&
ORGANIZATIONAL DEVELOPMENT
(OD)
 2

(a) Competitive/ External Strategy

(b) Relationships among Environment,

Strategy, Structure & Technology

(c) HR & HRD Influence on

Competitive Strategy
 3

(d) What about small business?

(e) Environmental Factors Affecting

the Selection of a Training Strategy

(f) Organizational Development (OD),

Strategy & Training
 (a) Competitive Strategy
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COMPETITIVE/ External STRATEGY

Market Leader Market Follower Cost Leader

( Prospectors & ( Analyzer, ( Defender)
Innovator) Differentiator)
 (b) Relationships among Environment, Strategy,
Structure & Technology (cont.)
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Matching Internal to External Strategy

External Strategy Internal Strategy

Aligned to maximize the match among environmental demands, core

technology , organization’s structure and mission
 (c) HR & HRD Influence on Competitive Strategy
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 *** In the early 1980s ------ organizations began to

recognize the importance of HR issues in making business
decisions
In the early 1980s

HRD Contributes to the Providing key Ensuring employees

Organization’s information related to have the necessary
the development of competencies to meet
Competitive Position
competitive strategies strategic performance
demands
 (d) What about small business?
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Strategic planning provides direction to the HRD

department about -
The amount and types of training that are valuable
to the organization
But is it necessary for small businesses to get
involved in strategic planning in order to be
successful?
The answer is “Yes”
(d) What about small business(Contd.) ?
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Because they are small, communicating a

strategic direction and implementing the plan
should be considerably easier than with a large
firm
 (e) Environmental Factors Affecting the Selection of a Training
Strategy
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Training Law &
Providers Regulations

Organization’s
Business HR Strategies
Strategies

Resources Allocated Training Needs

to Training

Organizational
HRD Function
Culture
Staff Size &
Core Competencies

Training Economic
Technology Conditions
 (f) Organizational Developments
9 Strategy & Training
planned

organization wide

Organization
managed from the top
Development

to increase organization
effectiveness & health

through planned interventions

in the organization’s processes

using behavioural-science
knowledge

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(f) Organizational Developments, Strategy & Training
(cont.)
12

Diagnosis

Three Basic
Action
Components

Program
Management
(f) Organizational Developments, Strategy & Training
(cont.)
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 Why do trainers need OD Competencies?

OD’s emphasis on participative approaches to problem

solving suggests that training is better
when trainees take an active role in the selection
of their training opportunities and in the training itself

A participative orientation also ties line managers directly to the training

Process by involving them in assessing their employees’ needs,
developing the training and developing support systems
for applying the training back on the job
(f) Organizational Developments, Strategy & Training
(cont.)
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 Why do OD professionals need Training Competencies?

1. When the OD process is started, training is needed

to provide education about the change process
and to provide the necessary KSAs

Three situation 2. After the process has been in place for a while,
some retraining or upgrading of KSAs
is required to sustain the process

3. As new employees enter the organization, they need

An understanding of the process and the KSAs
(f) Organizational Developments, Strategy & Training
(cont.)
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• Integrating Training and OD:

 Trainers and OD professionals have
legitimate differences in the nature of the change they
are responsible for but their interests are intimately
connected
 For this reason many organizations like
Anderson Consulting Education, AT & T Universal Card
Service, the US Coast Guard have merged their Human
Resource Development Department and Organization
Development Department
 under the name Performance Improvement Department
Thank You
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