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Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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22Chapter

Strategic TrainingStrategic Training

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ObjectivesObjectivesAfter reading this chapter, you should be able to:After reading this chapter, you should be able to:

1. Discuss how business strategy influences the

type and amount of training in a company.

2. Explain how the role of training haschanged.

3. Describe how changes in work roles

influence training.

4. Discuss how a companys staffing and

human resource planning strategies influence

training.

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ObjectivesObjectives (continued)(continued)

5. Explain the training needs created by

concentration, internal growth, external growth,

and disinvestment business strategies.

6. Discuss the advantages and disadvantages of

organizing the training function according to the

faculty, customer, matrix, and corporate

university models.7. Discuss the characteristics of the virtual training

organization and how it can contribute to the

companys business strategy.

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IntroductionIntroduction

Tires Pluss business strategy affects the time and

money invested in training.

Training helps employees learn job skills and

helps the company retain and motivate employees.

Training is strategic for:

Business goals related to human resources, and

Productivity, customer service, and innovation

Employees are aware that training is essential to

their future marketability.

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What is a Business Strategy?What is a Business Strategy?

A plan that integrates the companys goals,

policies, and actions.

The strategy influences how the company uses:

physical capital (plants, technology, and equipment)

financial capital (assets and cash reserves)

human capital (employees)

The business strategy helps direct the companys

activities to reach specific goals.

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Decisions a Company Must Make aboutDecisions a Company Must Make aboutHow to Compete to Reach Its GoalsHow to Compete to Reach Its Goals

Where to compete?

In what markets will we compete?

How to compete?

On what outcome or differentiating characteristic will

we compete?

Cost? Quality? Reliability? Delivery? Innovativeness?

With what will we compete? What resources will allow us to beat the competition?

How will we acquire, develop, and deploy those

resources to compete?

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Strategy impacts training with a strongStrategy impacts training with a stronginfluence on determining:influence on determining:

The amount of training devoted to current or

future job skills.

The extent to which training is customized forthe 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.

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Strategy impact on trainingStrategy impact on training (continued)(continued)

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 toother human resource management practices

such as selection and compensation.

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he Roles and Duties of Managers in CompaniesThe Roles and Duties of Managers in Companies

That Use HighThat Use High--Performance Work PracticesPerformance Work Practices

Managing Alignment

Clarify team goals and company goals.

Help employees manage their objectives.

Scan organization environment for useful information

for the team.

Encouraging Continuous Learning

Help team identify training needs. Help team become effective at on-the-job training.

Create environment that encourages learning.

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The Roles and Duties of Managers in CompaniesThe Roles and Duties of Managers in Companies

That Use HighThat Use High--Performance Work PracticesPerformance Work Practices (contd)(contd)

Coordinating Activities

Ensure that team is meeting internal and externalcustomer needs.

Ensure that team meets its quantity and qualityobjectives.

Help team resolve problems with other teams.

Ensure uniformity in interpretation of policies andprocedures.

Facilitating Decision-Making Process Facilitate team decision making.

Help team use effective decision-making processes.

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The Roles and Duties of Managers in CompaniesThe Roles and Duties of Managers in Companies

That Use HighThat Use High--Performance Work PracticesPerformance Work Practices (contd)(contd)

Creating andMaintaining Trust

Ensure that each team member is responsible for his or

her work load and customers.

Treat all team members with respect.

Listen and respond honestly to team ideas.

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Organizational Characteristics ThatOrganizational Characteristics ThatInfluence TrainingInfluence Training

Integration of Business Units

Global Presence

Business Conditions

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The Importance of Training Compared to OtherThe Importance of Training Compared to Other

HRM PracticesHRM Practices

The type of training and resources devoted

to training are influenced by the strategy

adopted for two HRM

practices: Staffing

Human Resource Planning

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Staffing Strategy Influence on TrainingStaffing Strategy Influence on Training

Two aspects of a companys staffing

strategy influence training:

The criteria used to make promotion andassignment decisions (assignment flow)

The places where the company prefers to

obtain human resources to fill open positions(supply flow)

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HR Planning Influence on TrainingHR 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.

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.

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The Broadening of Trainings RoleThe Broadening of Trainings Role

Focus on Teaching Skills andFocus on Teaching Skills and

KnowledgeKnowledge

Link Training to BusinessLink Training to Business

NeedsNeeds

Use Training to Create andUse Training to Create and

Share KnowledgeShare Knowledge

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Implications of Business Strategy for TrainingImplications of Business Strategy for Training

Strategy Emphasis How Achieved Key Issues Training Implications

Concentration Increase marketshare

Reduce operating

costs

Create marketniche

Improve quality

Improve

productivity

Customize

products

Skill currency

Development of

existing work

force

Team building

Cross-training

Specialized programs

Interpersonal skill

training

On-the-job training

Internal

Growth

Market

development

Product

development

Innovation

Joint ventures

Add distribution

channels

Expand global

markets

Create new

products

Joint ownership

Create new

jobs

Create new

tasks

Innovation

Support high-quality

product value

Cultural training

Conflict negotiationskills

Manager training in

feedback and

communication

Technical competence

in jobs

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Implications of Business Strategy for TrainingImplications of Business Strategy for Training(continued)(continued)

Strategy Emphasis How Achieved Key Issues Training Implications

External

Growth

(Acquisition)

Horizontal

integration

Vertical integration

Concentric

diversification

Acquire firms for

new market access

Acquire firms to

supply or buy

productsAcquire any firm

Integration

Redundancy

Restructuring

Determining

capabilities of

acquired employees

Integrating training

systemsTeam building

Disinvestment Retrenchment

Turnaround

Divestiture

Liquidation

Reduce costs

Reduce assets

Generate revenue

Redefine goals

Sell off all assets

Efficiency Motivation

Goal setting

Stress management

Time management

Leadership training

Outplacement

assistance

Job-search skills

training

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Models of Organizing the Training DepartmentModels of Organizing the Training Department

Faculty Model

Customer Model

Matrix Model

Corporate University

Model

Virtual Model

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The Faculty ModelThe Faculty Model

Safety

Training

Quality

Training

Technology

and

Computer

Systems

Leadership

Development

Sales

Training

Director ofTraining

Training Specialty Areas

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The Customer ModelThe Customer Model

Information

Systems

Marketing Production

and

Operations

Finance

Director ofTraining

Business Functions

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The Matrix ModelThe Matrix Model

Sales

Training

Quality

Training

Technology

and

Computer

Systems

Safety

Training

Director ofTraining

Business Functions

MarketingProduction

and

Operations

Training

Specialty

Areas

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The Corporate University ModelThe Corporate University Model

Training

Advantages

Dissemination of

Best Practices

Align Training

with Business

Needs

Integrate Training

Initiatives

Effectively Utilize

New Training

Methods and

Technology

Historical Training

Problems

Excess Costs

Poor Delivery and

Focus

Inconsistent Use

of Common

Training Practices

Best Training

Practices Not

Shared

Training Not

Integrated or

Coordinated

Leadership Development Programs

New Employee Programs

ProductDevelopment Operations Sales andMarketing HumanResources

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irtual Training OrganizationsVirtual Training Organizations

Virtual training organizations operate according to

three principles:

Employees (not the company) have primary

responsibility for learning

The most effective learning takes place on the job,

not in the classroom

For training to translate into improved jobperformance, the manager-employee relationship

(not employee-trainer relationship) is critical.

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Virtual Training OrganizationsVirtual Training Organizations (continued)(continued)

A virtual training organization is customer focused

Takes more responsibility for learning and

evaluating training effectiveness

Provides customized training solutions based on

customer needs

Determines when and how to deliver training

based on customer needs

Leverages resources from many areas

Involves line managers in direction and content

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