STRATEGIC TRAINING

Business Strategy
A plan that integrates the companys goals, policies, and actions.

It helps direct the companys activities to reach specific goals.

Business Strategy
The strategy influences how the company uses: physical capital (plants, technology, equipment) and

financial capital (assets and cash reserves) human capital (employees)

Strategy impacts training with a strong influence on determining:

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.

Strategy impacts training with a strong influence on determining:

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.

EVOLUTION OF TRAININGS ROLE

Training Event
Performance Result Create and Share Knowledge Business Need

Learning Emphasis

Training event training program designed to give specific information. Learning outcomes KSAs needed by the employee and the organization. Knowledge: Explicit/Declarativeknowledge that can be formalized, codified and communicated. Tacitpersonal knowledge based on individual experience and is difficult to explain to others.

Creating and sharing of knowledge development of intellectual capital including: cognitive knowledge (know what) advanced skills (know how) system understanding and creativity (know why) and self-motivated creativity (care why).

The Strategic Training and Development Process

1. Business Vision, Mission, Values, Goals Strategy Diversify the Learning Portfolio, 2. Strategic Training Improve Customer Service, Accelerate and Development the pace of employee learning, Capture Initiatives and Share Knowledge 3. Training and Use Web-Based Training, Make Development development planning mandatory Activities 4. Metrics that Learning, Performance Improvement, Show Value of Reduced Customer Complaints, Reduced Training Turnover, Employee Satisfaction, Balanced Scorecard

Balanced Scorecarda means of performance measurement that provides managers with a chance to look at the overall company performance or the performance of departments or functions from the perspective of internal and external customers, employees, and shareholders.

Four Perspectives Considered in Balanced Scorecard

Customer (time, quality, performance, service, cost) Internal (processes satisfaction) that influence customer

Innovation and Learning (operating efficiency, employee satisfaction, continuous improvement) Financial (profitability, growth, shareholder value)

Organizational Characteristics That Influence Training

Roles of Employees and Mangers
Top Management Support Integration of Business Unit Global Presence Business Conditions

Organizational Characteristics That Influence Training

Other Human Resources Management Practices Staffing recruitment and selection Human Resource Planning planning of changes needed in HR to help meet changing business conditions. Extent of Unionization

Staff Involvement in Training and Development

Staffing Strategy Influence on 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).

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.

HR Planning Influence on Training

Training can be used to prepare employees for: increased responsibilities in their current job,

promotions, lateral moves, transfers, and

downward job opportunities that are predicted by the human resource plan.

TRAINING NEEDS IN DIFFERENT STRATEGIES

Strategy Concentration Emphasis Increase market share Reduce operating costs Create market niche Market development Product development Innovation Joint ventures How Achieved Improve quality Improve productivity Customize products Add distribution channels Expand global markets Create new products Joint ownership Key Issues Skill currency Development of existing work force Training Implications Team building Cross-training Specialized programs Interpersonal skill training On-the-job training Support high-quality product value Cultural training Conflict negotiation skills Manager training in feedback and communication Technical competence in jobs

Internal Growth

Create new jobs Create new tasks Innovation

TRAINING NEEDS IN DIFFERENT STRATEGIES

Strategy External Growth (Acquisition) Emphasis Horizontal integration Vertical integration Concentric diversification Retrenchment Turnaround Divestiture Liquidation How Achieved Acquire firms for new market access Acquire firms to supply or buy products Acquire any firm Reduce costs Reduce assets Generate revenue Redefine goals Sell off all assets Key Issues Integration Redundancy Restructuring Training Implications Determining capabilities of acquired employees Integrating training systems Team building Motivation Goal setting Stress management Time management Leadership training Outplacement assistance Job-search skills training

Disinvestment

Efficiency

Models of Organizing the Training Department

Faculty Model Customer Model

Matrix Model

Corporate University Model Virtual Model