Strategic Training and Development: A gateway to Organizational success

Presented By: Ashish Bhatia Saumya Bajpai

HR’s role in Strategic T & D

To Identify, Design and Implement strategic Training and Development initiatives. This can be achieved through following sequential steps –

Strategic T & D process
 An

in-depth understanding of the business environment, knowledge of the organization’s goals and insight regarding T & D options of strategic learning initiatives that align with business goals on T & D activities of T & D

 Development

 Deciding

 Evaluation

Recommendations to determine Strategic Training Initiatives
 Understand

which jobs have the most rapidly changing knowledge requirements  Pinpoint areas where customer contact personnel may know less than the customers with whom they interact  Assess employee perceptions of growth and learning opportunities  Examine how organizational changes are affecting knowledge and skill requirements  Audit how well current offerings are aligned with strategic needs

Evaluation of T & D
 Develop

measurable training/learning outcomes and analysis of transfer of training outcome measures

 Develop  Select  Plan

an evaluation strategy

and execute the evaluation process

Training outcomes includes  Cognitive

outcomes – safety rules, steps in appraisal process  Skill based outcomes – listening and coaching skills  Affective outcomes – satisfaction with training, attitudes regarding other cultures  Results – lower absenteeism  ROI – economic value measured

The value of Training and Development (Transfer of Training)
Prerequisite for the organization to gain true value from strategic training and development –
 Full

commitment from senior management to organizational learning understands the concept of training transfer (i.e. transfer of learning)

 HR

Theoretical Models
Social Learning Theory : points to the criticality of self-efficacy for effective learning. Key factors include –
 Employee

level of employee motivation  Ability to understand  Previous knowledge and skill  Goal setting  Employee participation in decision making on training needs

 Cognitive

theory of transfer: the likelihood of transfer is dependent on the trainee’s ability to retrieve and use learned capabilities in the work place. In training programs, training transfer is further enhanced through application assignments that create simulations to apply learning in the work setting, thus linking learned capabilities and real-world application.

Potential Obstacles
 Work  Lack  Lack

conditions of peer support of management support

Recommendations (To positively influence training outcomes)
 Provide

trainees with social cues that validate that transfer training is supported by management  Provide positive reinforcement  Provide evidence of targeted improved performance due to transfer training  Link transfer of training to future job success

Return on investment
 ROI

on training: comparing the monetary benefits/outcomes of training with the cost of training  Costs in training: direct + indirect  Direct costs
Salaries and benefits of employees  Program materials  Equipment rentals, travel cost

 Indirect

costs

Office supplies  Travel and expenses not billed  Training department salaries

Cost

benefit analysis should be done
 Benefits

 Costs

Direct cost  Indirect cost  Development cost  Overhead cost  Lost production cost  Compensation for trainers

Outcomes (no of accidents)  Annual amount of benefits

Metrics for measuring training

Cost/hour, number of employees trained, training costs
Balanced scorecard approach Innovation & learning
•Employee satisfaction •Continuous improvement •Operating efficiency

Customer
•Performance •Service •Time •Quality

Internal
•Processes that can influence customer satisfaction

Financial
•Growth •Profitability •Shareholder value

Technology for Training
 Reasons

training

for increased use of technology in

Decreased cost of technology  Increased use of web, multimedia, e-learning, web conferences  Greater use of contingent workers  Significant cost saving  Ability to build different elements to improve the learning environment
 Technological

advances result in in novation effectiveness and success

 Advantages

of technology:

Building smart products that help in better performance  Virtual work arrangements  Streamlining the learning process  ‘Just in time’ learning
 From

strategic viewpoint

Effectiveness of the process should be there  Select the best program and right vendor  Structure, presentation and learner controlshould be taken care of

Concept of Corporate Universities
 Vehicle

for strategic T & D  Encourages a learning culture, drives strategic change, develops creativity and promotes innovation  Tool integration, culture building and knowledge management  Can be a virtual learning organization  Design and attitude of trainees has to be right

Strategic Outsourcing

Advantages

Points to remember

Increased focus on core functions Access to up-to-date technology Increased cost control & tracking Expertise and technology without increasing fixed costs

  

Vendor should have knowledge of industry Match between organization and vendor’s values Relationship management Measures of success Dispute handling Expertise

Global Mindset
 Necessary

to compete in global business environment  Responsibility of senior leaders like CEO  Cross-border orientation + local perspective  Psychological focus: ability to accept differences and work in cultural diversity  Strategic focus: making and implementing strategic decisions and goals  Both company and workforce should grow

 Ways

to develop global mindset:

Educating management about global mindset and its competitive advantage  International assignments  Virtual global teams  Sending employees on international assignments at early stage
 Global

mindset should be: Think locally, act globally

Conclusion
 Business

environment is rapidly changing  Human resource can create sustained competitive advantage  Hence strategic T & D is the key to success  HR can provide success and excellence in the current scenario

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