1 Chapter 2 Strategic Training Copyright 2002 by

2 Training is most effective when: ¦A company’s 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: r Business goals related to human resources, and r Productivity, customer service, and innovation ¦ Employees are aware that training is essential to their future marketability. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

3 Terms ¦ Strategy is a plan for achieving the organization’s goals ¦ Goals are specific statements about what the company hopes to achieve ¦ Mission is a general statement about why the firm exists and what commitments it’s making ¦ Strategic planning is the development of relatively long-term objectives and plans for pursuing the company’s mission Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 What is a Business Strategy? ¦A plan that integrates the company’s goals, policies, and actions. ¦ The strategy influences how the company uses: r physical capital (plants, technology, and equipment) r financial capital (assets and cash reserves) r human capital (employees) ¦ The business strategy helps direct the company’s activities to reach specific goals. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

5 Decisions a Company Must Make about How to Compete to Reach Its Goals ¦ Where r In to compete? what markets will we compete? ¦ How to compete? r On what outcome or differentiating characteristic will we compete? r Cost? Quality? Reliability? Delivery? Innovativeness? ¦ With what will we compete? r What resources will allow us to beat the competition? r How will we acquire, develop, and deploy those resources to compete? Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

6 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. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

7 Strategy impact on training (continued) ¦ Whether training is: r planned and systematically administered, or r provided only when problems occur, or r 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. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

8 Roles ¦ Roles are sets of expected behaviors r. Employee roles have changed r. Manager roles must also change r. Executive roles Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

9 The Roles and Duties of Managers in Companies That Use High-Performance Work Practices ¦ Managing Alignment r Clarify team goals and company goals. r Help employees manage their objectives. r Scan organization environment for useful information for the team. ¦ Encouraging Continuous Learning r Help team identify training needs. r Help team become effective at on-the-job training. r Create environment that encourages learning. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

10 The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (con’td) ¦ Coordinating Activities r Ensure that team is meeting internal and external customer needs. r Ensure that team meets its quantity and quality objectives. r Help team resolve problems with other teams. r Ensure uniformity in interpretation of policies and procedures. ¦ Facilitating Decision-Making Process r Facilitate team decision making. r Help team use effective decision-making processes. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

11 The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (con’td) ¦ Creating and Maintaining Trust r Ensure that each team member is responsible for his or her work load and customers. r Treat all team members with respect. r Listen and respond honestly to team ideas. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Organizational Characteristics That Influence Training 12 Integration of Business Units Global Presence Business Conditions

13 The Importance of Training Compared to Other HRM Practices ¦ HRM practices are those management activities related to the investment of time, effort, and money devoted to staffing, performance management, training, compensation and benefits ¦ The type of training and resources devoted to training are influenced by the strategy adopted for two HRM practices: r Staffing r Human Resource Planning Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

14 Staffing Strategy Influence on Training ¦ Two aspects of a company’s staffing strategy influence training: r. The criteria used to make promotion and assignment decisions (assignment flow) r. The places where the company prefers to obtain human resources to fill open positions (supply flow) Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

15 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. ¦ Training can be used to prepare employees for: r increased responsibilities in their current job, r promotions, lateral moves, transfers, and r downward job opportunities that are predicted by the human resource plan. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

16 The Broadening of Training’s Role Focus on Teaching Skills and Knowledge Link Training to Business Needs Use Training to Create and Share Knowledge Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

17 Implications of Business Strategy for Training Strategy Emphasis How Achieved Key Issues Training Implications Concentration Increase market share Reduce operating costs Create market niche 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 negotiation skills Manager training in feedback and communication Technical competence in jobs Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

18 Implications of Business Strategy for Training (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 products Acquire any firm Integration Redundancy Restructuring Determining capabilities of acquired employees Integrating training systems Team 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 Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

19 Models of Organizing the Training Department Faculty Model Customer Model Matrix Model Corporate University Model Virtual Model Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

20 The Faculty Model Training Specialty Areas Copyright © 2002 by The Mc. Graw-Hill

21 The Customer Model Business Functions Copyright © 2002 by The Mc. Graw-Hill Companies,

22 The Matrix Model Training Specialty Areas Marketing Production and Operations Business Functions Copyright

23 The Corporate University Model Historical Training Problems Leadership Development Programs Dissemination of Best Practices Excess Costs Poor Delivery and Focus Product Operations Development Sales and Marketing Human Resources Align Training with Business Needs Inconsistent Use of Common Training Practices Integrate Training Initiatives Best Training Practices Not Shared Training Not Integrated or Coordinated Training Advantages New Employee Programs Effectively Utilize New Training Methods and Technology Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

24 Virtual Training Organizations ¦ Virtual training organizations operate according to three principles: r Employees (not the company) have primary responsibility for learning r The most effective learning takes place on the job, not in the classroom r For training to translate into improved job performance, the manager-employee relationship (not employee-trainer relationship) is critical. Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

25 Virtual Training Organizations (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 Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.