Module-2: Strategic Training &

Development

DR. A. HANS
 Module-2 : Strategic Training

Why ?
1. All companies need to be competitive to make more
money in business
2. To contribute to success of the firm, training
activities should also help the company to achieve its
business strategy.
3. A Business Strategy is a plan of action that integrates
the company’s goals, policies and action.
 Strategic Training

1. Strategy influence how the firm uses physical

capital, financial capital & human capital.
2. Business Strategy helps direct the company ‘s
activities( Production, Fin, Mkt, HR) to reach
specific goals.
 Types of Business Strategy

1. Cost leadership
2. Differentiation
3. Combination of Both

( Are you aware of it?)

 Strategic Training

Business strategy has a major impact on

1. The type and amount of training that occurs

2. Which resources should be more devoted to training
(Money , Trainer Time/expertise and Program
Development)
Strategy influences the level and mix of skills needed
in the company.
 Strategy Influencing Training. How?

1. The amount of training devoted to current or future job

skills
2. The extent to which training is customized for a particular
need of an employee or developed based on the need of a
team , unit /department or division
3. Whether training is restricted to specific groups of
employees or open for all?
4. Whether the training is systematically planned and
administered or provided only when problems occurs?
(Reactive Training or..?)
5. The importance placed on training compare to other
HRM practices(Non Training areas)
Strategic training: Learning As strategic tool

1. Companies have identified the strategic importance

of learning by striving to become learning
organization.
2. Training processes are carefully scrutinized and
aligned with company goals.
3. In learning organization , training is seen as one
part of a system designed to create Human Capital
 Learning organization

Learning Organization(LO) is a company/system

that has developed a capacity to learn , adapt &
change.
LO emphasizes that learning occurs at all three levels
1. Individual
2. Group
3. Organizational
Develop an ability to learn from failure and success
LO emphasizes KM
 LO

In LO, the learning includes understanding of

1. Why things happen and why some choices led to +v
e/-ve outcomes
2. Success and failure must trigger investigation
3. Such enquiry helps employees to revise their
assumptions, models and theories.
4. ……….……………………………….
 Which is more important ?

Explicit knowledge or tacit Knowledge? Why?

Which one can be imitated easily?

Explain: 5 min self- learning

 KEY Features of LO

1. Supportive Learning Environment

2. Learning processes & Practices
3. Managers Reinforce Learning
1. Supportive Learning Environment
 1. Supportive Learning Environment

1. Employees must feel safe expressing their

thoughts
2. Different functional and cultural perspectives are
welcomed
3. Employees are encouraged to take risk, innovate
and explore
4. Thoughtful review of the company processes is
encouraged
2. Learning processes & Practices
 2. Learning processes & Practices

1. Knowledge creation , dissemination , sharing &

application are practiced.
2. System are developed for creating , capturing and
sharing knowledge
3. Managers Reinforce Learning
 3. Managers Reinforce Learning

1. Managers actively question and listen to employees

(Dialogue & debate)
2. Managers are willing to consider alternative points
of view
3. Time is devoted to problems identification,
learning process & practices
4. Learning is rewarded , promoted and supported
Strategic Training Process
 1. Business Strategy

Identify company’s business strategy:

1. Mission and vision
2. Company’s values culture
3. SWOT analysis to identify company’s operating
environment
 2. Strategic T&D Initiatives

S.N Strategic Training Implication/

& development
Initiative
1 Diversify the Learning 1. Use new technology for training
Portfolio 2. Facilitate informal learning
3. Provide more personalized learning
opportunities
2 Expand who is to be 1. Train customers, suppliers, and employees
trained 2. Offer more learning opportunities for non-
managerial employee
3 Accelerate the Pace of 1. Quickly identify needs and provide a high
Employee Learning quality learning solution
2. Reduce the time to develop training programs
3. Facilitate access to learning resources on an
as needed basis
 2. Strategic T&D Initiatives

S.N Strategic Training & Implication/

development
Initiative
4 Capture and Share 1. Capture insight and information from
Knowledge knowledgeable Employees
2. Logically organize and store information
3. Provide methods to make information
available

5 Align Training and 1. Identify needed knowledge, skills, abilities, or

Development with the Competencies
Company ‘s Strategic 2. Ensure that current training and development
Direction programs support the company’s strategic
needs
 2. Strategic T&D Initiatives
S.N Strategic Training & Implication/
development
Initiative
6 Ensure That the Work 1. Remove constraints on learning
Environment Supports 2. Dedicate physical space to encourage
Learning and Transfer teamwork, collaboration, creativity, and
of Training knowledge sharing
3. Ensure that employees understand the
importance of learning
4. Ensure that managers and peers are
supportive of training, development, and
learning
7 Improve Customer 1. Ensure that employees have product and
Service service knowledge
2. Ensure that employees have skills needed to
interact with customers
3. Ensure that employees understand their roles
and Decision making authority
 2. Strategic T&D Initiatives
S.N Strategic Training & Implication/
development
Initiative
8 Provide Development 1. Ensure that employees have opportunities to
Opportunities and develop
Communicate to 2. Ensure that employees understand career
Employee opportunities and personal growth opportunities
3. Ensure that training and development
addresses employees ‘s needs in current job as
well as growth opportunities
 Self-Learning

1. Which strategic T&D initiatives could be more

effective than others? Identify any three based on
your rational perspective and Justify.
 Step 3: Strategic Training Process

Translating these strategic training and development

initiatives into concrete training and development
activities:
1. Developing initiatives related to use of new
technology in training.
2. Increasing access to training programs for certain
groups of employees.
3. Reducing training course development time, and
developing new or expanded course offerings.
 Step 4: Strategic Training Process

Identifying measures or metrics based on

1. Trainees satisfaction with the training program(y/n)
2. Whether the trainees knowledge, skill, ability, or
attitudes changed? Improved? (y/n)
3. Whether the program resulted in business related
outcomes for the company? (Y/n)
 Organizational Characteristics that Influence
Training(Self-Study & discussion)

1. Employees Work Roles: need multi tasking or

cross training encourage skill- based pay systems
2. Managers Work Roles. i.e. line, middle or senior
manager; plan, organize, lead, control
3. Top Management Support
4. The degree of integration of business units
5. Global business
6. Business Conditions : merger & acquisition,
recession/booming; PLC of company, etc.
 Self- Learning

Q. Identify any three organizational characteristics

influencing training based on your rational
perspective and Justify.
 B. Training Needs in Different Strategy

There are following corporate level strategies:

1. Concentration strategy
2. Internal growth strategy
3. External Growth strategy
4. Disinvestment strategy

( ***Please read about the above topics for your self-

learning and class discussion)
 Concentration strategy

Achieved by:
1. Increased market share
2. Reduced operating costs
3. Market niche created or maintained

How to get that ?

1. Improve product quality
2. Improve productivity or innovate technical processes
3. Customize products or services
 Key Issues & Implications

1. Skill Currency
2. Development of Existing Workforce

 How?
1. On- The job Training
2. Cross training
3. Team Building
 Internal growth strategy

1. Market development
2. Product development
3. Innovation
4. JV
 How to get ?
1. Market existing products/add distribution channels
2. Expand global market
3. Modify existing products
4. Create new or different products
5. Expand through joint ownership
 Key Issues & Implications

1. Creation of new jobs

2. Innovation
3. Talent Management
How?
1. Technical competence in the job
2. Manager training
3. Cultural training for value creation
4. Conflict negotiation
 External Growth strategy

1. Horizontal integration
2. Vertical integration
3. Concentric diversification

 How.?
1. Acquire firms operating at same stage in product
market chain (new market access)
2. Acquire business that can supply or buy products
3. Acquire firms that have nothing in common with
acquiring firm
 Key Issues & Implications

1. Integration
2. Redundancy
3. Restructuring
How?
1. Integration of training system
2. Determination of capabilities of all types of
employees
3. Team building
4. Development of shared culture
 Disinvestment strategy

1. Retrenchment
2. Turnaround
3. Divestiture
4. Liquidation
 How?
1. Reduce costs
2. Reduce assets
3. Generate revenue
4. Redefine goals
5. Sell off all assets
 Key Issues & Implications

Maintain Efficiency

How?
1. Outplacement
2. Job search training
3. Motivation
4. Stress training
5. Interpersonal communication
 Self Learning

Q1.Evaluate the challenges and opportunities with

respect the types of strategies adopted by a business.
C. Models of Organizing the training Department

1. The Corporate University

2. Business Embedded learning function
3. Change model perspective
 Corporate University Model

A corporate university is any educational entity

that is a strategic tool designed to assist its parent
organization in achieving its goals by conducting
activities that foster individual and organizational
learning and knowledge.
The Faculty Model of training department
organization employs a structure like a college. The
department is headed by a director under whom
there is a staff of experts with highly specialized
knowledge of particular topics or skill areas
 Business Embedded learning function

It is the functional training model that aligns

the business strategy with the needs and
requirements identified with organization for
achieving the prospective results.
A Business-Embedded training function not
only views trainees as customers, but also views
managers as customers who make decisions to send
employees for training.
 Change Model

(Self –Study & Class Discussion)

 D. Marketing training & creating a Brand

1. Ask current customers of training including managers who

purchase or responsible for training
2. Define how you want to be perceived by current and future
customers
3. Identify factors that influence your customer’s perception of
the training function
4. Review each factors to determine if it is supporting and
communicating to your customer
5. Make changes so that each factor is supporting the brand
6. Get customer feedback
7. Interact and create an experience that support and identify
brands
 E. Outsourcing training

Ask questions:
1. What are the capabilities of your in- house functions?
2. Does the staff know enough that you can grow the
training skills you need, or do you need to hire skills
from outside.
3. Can you in-house training function take an additional
training responsibilities?
4. Is training key to your company’s strategy?
5. Does you company value its training department?
 Questions to be asked before outsourcing

1. Does the training content change rapidly? (y)

2. Are outsourced trainers viewed as an experts ,or they
viewed with cynicism? (Expert)
3. Do you understand the strength and weakness of your
current training program? (y)
4. Do you want to outsource the entire training function?
(y/depending upon the organizational need)
5. Does your company accept responsibility for building
skills and talents? (Y)
6. Is a combination of internal and external training the best
solution? (y)
 Outsourcing Training

After asking questions and evaluating the pros

and cons with the collective discussion & decision
made by top management and all functional
heads ,the final decision must be taken.

Please Refer the Book:

Employee Training & Development –Raymond A.
Noe & Amitabh Deo Kodwani , 7th Ed., Mcgraw Hill
Education