Chapter: 02

STRATEGIC TRAINING
 Business Strategy is a plan that 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).
 Strategy helps direct the company’s activities (production, finance, marketing,
human resources) to reach specific goals.
 Goals are what the company hopes to achieve in the medium and
long-term future.
 Most companies’ goals include financial goals, such as to maximize
shareholder wealth. But companies have other goals related to employee
satisfaction, industry position, and community service.
 There is both a direct and indirect link between training
and business strategy and goals.
 Training that helps employees develop the skills needed
to perform their jobs directly affects the business.
 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.
 The Evolution of Training’s Role
To better relate to improving employees’ performance and to help meet business needs and
challenges, training’s role must evolve to include an emphasis on learning and creating and
sharing knowledge.
 Learning refers to the acquisition of knowledge by individual employees or groups of
employees who are willing to apply that knowledge in their jobs in making decisions and
accomplishing tasks for the company.

 Knowledge refers to what individuals or teams of employees know or know how to do

(human and social knowledge) as well as company rules, processes, tools, and routines
(structured knowledge).Knowledge is either tacit knowledge or explicit knowledge.

 Explicit knowledge refers to knowledge that can be formalized, codified, and communicated.
That is, it can be found in manuals, formulas, and specifications.

 Tacit knowledge refers to personal knowledge based on individual experience that is difficult
to explain to others.
The Strategic Training and Development Process
 Organizational characteristics that influence training

 Roles of employees and Managers:

Research suggests that managers in traditional work environments are expected to do the
following:

• Manage individual performance: Motivate employees to change performance, provide

performance feedback, and monitor training activities.
• Develop employees: Explain work assignments and provide technical expertise.
• Plan and allocate resources: Translate strategic plans into work assignments and
establish target dates for projects.
• Coordinate interdependent groups: Persuade other units to provide products or
resources needed by the work group and understand the goals and plans of other units.
 Roles of employees and Managers

• Manage group performance: Define areas of responsibility, meet with

other managers to discuss effects of changes in the work unit on their
groups, facilitate change, and implement business strategy.
• Monitor the business environment: Develop and maintain relationships
with clients and customers and participate in task forces to identify new
business opportunities.
• Represent one’s work unit: Develop relationships with other managers,
communicate the needs of the work group to other units, and provide
information on work group status to other groups
 Top management support:
The CEO, the top manager in the company, plays a key role in determining the importance of training
and learning in the company.
The CEO is responsible for:
• A clear direction for learning (vision).
• Encouragement, resources, and commitment for strategic learning (sponsor).
• Taking an active role in governing learning, including reviewing goals and objectives and
providing insight on how to measure training effectiveness (governor).
• Developing new learning programs for the company (subject-matter expert).
• Teaching programs or providing resources online (faculty).
• Serving as a role model for learning for the entire company and demonstrating a willingness to
constantly learn (learner).
• Promoting the company’s commitment to learning by advocating it in speeches, annual
reports, interviews, and other public relations tools (marketing agent).
 Integration of Business Units:
In a highly integrated business, employees need to understand other units, services, and
products in the company. Training likely includes rotating employees between jobs in different
businesses so they can gain an understanding of the whole business.

 Global Presence:
For companies with global operations, training is used to prepare employees for temporary or
long-term overseas assignments.

 Business Conditions:
When unemployment is low and/or businesses are growing at a high rate, companies often find
it difficult to attract new employees
For companies in an unstable or recessionary business environment, training may be
abandoned, be left to the discretion of managers, or become more short term.
For employees in companies experiencing growth—there may be many new opportunities for
lateral job moves and promotions.
 Other HRM Practices:
Human resource management (HRM) practices consist of the management
activities related to investments in staffing, performance management, training, and
compensation and benefits. The type of training and the resources devoted to training
are influenced by the strategy adopted for two human resource management
practices: staffing and human resource planning
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.).
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. Human resource plans can help identify where
employees with certain types of skills are needed in the company.
 Staff Involvement in Training and Development:
• How often and how well a company’s training program is used are affected by the
degree to which managers, employees, and specialized development staff are
involved in the process.
• If managers are not involved in the training process, training may be unrelated to
business needs. Managers may also not be committed to ensuring that training is
effective. 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.
• If line managers are aware of what development activity can achieve, such as
reducing the time it takes to fill open positions, they will be more willing to become
involved in it. They will also become more involved in the training process if they
are rewarded for participating.
Training needs in different strategies
Models of organizing Training department
 The Faculty Model
 The customer model

 The matrix model

 The corporate university model
 Marketing the training function
successful internal marketing tactics:
• Involve the target audience in developing the training or learning effort.
• Demonstrate how a training and development program can be used to solve
specific
business needs.
• Showcase an example of how training has been used within the company to
solve
specific business needs.
• Identify a “champion” (e.g., top-level manager) who actively supports training.
• Listen and act on feedback received from clients, managers, and employees.
• Determine what financial numbers—such as return on assets, cash flow from
operations, or net profit or loss— top-level executives are concerned with and
show how training and development will help improve those numbers.
• Speak in terms that employees and managers understand. Translate jargon
 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.