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Chapter2StrategicTrainingCopyright?2010bytheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/IrwinIntroductionBusinessstrategy–

aplanthatintegratesthecompany'sgoals,policies,andactions.Thestrategyinfluenceshowthecompanyuses:physicalcapital,financialcapital,andhumancapital.Goals–

whatthecompanyhopestoachieveinthemedium-andlong-termfuture.Introduction(cont.)Strategyhasaparticularlystronginfluenceondetermining:Theamountoftrainingdevotedtocurrentorfuturejobskills.Theextenttowhichtrainingiscustomizedfortheparticularneedsofanemployeeorisdevelopedbasedontheneedsofateam,unit,ordivision.Whethertrainingisrestrictedtospecificgroupsofemployeesoropentoallemployees.Introduction(cont.)Strategyhasaparticularlystronginfluenceondetermining:Whethertrainingisplannedandsystematicallyadministered,providedonlywhenproblemsoccur,ordevelopedspontaneouslyasareactiontowhatcompetitorsaredoing.Theimportanceplacedontrainingcomparedtootherhumanresourcemanagementpracticessuchasselectionandcompensation.Figure2.1-EvolutionofTraining'sRoleTheEvolutionofTraining’sRoleLearning–

theacquisitionofknowledgebyindividualemployeesorgroupsofemployeeswhoarewillingtoapplythatknowledgeintheirjobsinmakingdecisionsandaccomplishingtasksforthecompany.Knowledge–whatindividualsorteamsofemployeesknowaswellascompanyrules,processes,tools,androutines.Itiseithertacitknowledgeorexplicitknowledge.TheEvolutionofTraining’sRole(cont.)Explicitknowledge–

knowledgethatcanbeformalized,codified,andcommunicated.Tacitknowledge–personalknowledgebasedonindividualexperiencethatisdifficulttoexplaintoothers.TheEvolutionofTraining’sRole(cont.)Keycapabilitiesneededtoimplementlearningstrategies:Alignmentoflearninggoalstothebusinessgoals.Measurementoftheoverallbusinessimpactofthelearningfunction.Movementoflearningoutsidethecompanytoincludecustomers,vendors,andsuppliers.Afocusondevelopingcompetenciesforthemostcriticaljobs.TheEvolutionofTraining’sRole(cont.)Keycapabilitiesneededtoimplementlearningstrategies:Integrationoflearningwithotherhumanresourcefunctionssuchasknowledgemanagement,performancesupport,andtalentmanagement.Trainingdeliveryapproachesthatincludeclassroomaswellase-learning.Designanddeliveryofleadershipdevelopmentcourses.Figure2.2-TheStrategicTrainingandDevelopmentProcessTheStrategicTrainingandDevelopmentProcessMission–thecompany'sreasonforexisting.Vision–thepictureofthefuturethatthecompanywantstoachieve.Values–whatthecompanystandsfor.SWOTanalysis–ananalysisofthecompany'soperatingenvironmenttoidentifyopportunitiesandthreatsaswellasaninternalanalysisofthecompany'sstrengthsandweaknesses.Thecompanyhastoconsideritscompetition.TheStrategicTrainingandDevelopmentProcess(cont.)Strategictraininganddevelopmentinitiatives–learning-relatedactionsthatacompanyshouldtaketohelpitachieveitsbusinessstrategy.Table2.2-StrategicTrainingandDevelopmentInitiativesandTheirImplicationsTable2.3-QuestionstoAsktoDevelopStrategicTrainingandDevelopmentInitiativesTheStrategicTrainingandDevelopmentProcess(cont.)Metricsareusedtoidentify:trainees'satisfactionwiththetrainingprogram.whetherthetrainees'knowledge,skill,ability,orattitudeschangedasaresultofprogramparticipation.whethertheprogramresultedinbusiness-relatedoutcomesforthecompany.TheStrategicTrainingandDevelopmentProcess(cont.)Balancescorecard

–meansofperformancemeasurementthatprovidesmanagerswithachancetolookattheoverallcompanyperformanceortheperformanceofdepartmentsorfunctionsItconsidersfourperspectives:customer,internal,innovationandlearning,andfinancial.Table2.6-TheRolesandDutiesofManagersinCompaniesThatUseHigh-PerformanceWorkPracticesOrganizationalCharacteristicsThatInfluenceTrainingTopmanagementsupportTheCEOisresponsibleforvision,andbeingasponsorgovernor,faculty,learner,andmarketingagent.Thedegreetowhichacompany'sunitsorbusinessesareintegratedaffectsthekindoftrainingthattakesplace.Globalpresence.Businessconditions.OrganizationalCharacteristicsThatInfluenceTraining(cont.)Humanresourcemanagement(HRM)practices–themanagementactivitiesrelatedtoinvestments,staffingperformancemanagement,training,andcompensationandbenefits.OrganizationalCharacteristicsThatInfluenceTraining(cont.)Staffingstrategy–

thecompany'sdecisionsregardingwheretofindemployees,howtoselectthem,andthedesiredmixofemployeeskillsandstatuses.Humanresourceplanning–identification,analysis,forecasting,andplanningofchangesneededinthehumanresourceareatohelpthecompanymeetchangingbusinessconditions.Figure2.4-ImplicationsofStaffingStrategyforTrainingOrganizationalCharacteristicsThatInfluenceTraining(cont.)ExtentofunionizationUnions'interestintraininghasresultedinjointunion-managementprogramsdesignedtohelpemployeespreparefornewjobs.StaffinvolvementintraininganddevelopmentIfmanagersarenotinvolvedinthetrainingprocess,trainingmaybeunrelatedtobusinessneeds.OrganizationalCharacteristicsThatInfluenceTraining(cont.)StaffinvolvementintraininganddevelopmentIflinemanagersareawareofwhatdevelopmentactivitycanachieve,theywillbemorewillingtobecomeinvolvedinit.Theywillalsobecomemoreinvolvedinthetrainingprocessiftheyarerewardedforparticipating.Anemergingtrendisthatcompaniesexpectemployeestoinitiatethetrainingprocess.Table2.7-ImplicationsofBusinessStrategyforTrainingTable2.7-ImplicationsofBusinessStrategyforTrainingTable2.7-ImplicationsofBusinessStrategyforTrainingCentralizedtraining-traininganddevelopmentprograms,resources,andprofessionalsareprimarilyhousedinonelocationanddecisionsabouttraininginvestment,programs,anddeliverymethodsaremadefromthatdepartment.Ithelpscompaniesbetterintegrateprogramsfordevelopingleadersandmanagingtalentwithtrainingandlearningduringtimesofchange.ModelsofOrganizingtheTrainingDepartmentFacultymodelLookalotlikethestructureofacollege.Trainingstaffareexpertsintheareasinwhichtheytrain.Thetrainingdepartment'splansareeasilydeterminedbystaffexpertise.Thetrainingfunctionmaynotmeettheneedsoftheorganization.Trainersmaybeunawareofbusinessproblemsorunwillingtoadaptmaterialstofitabusinessneed.ModelsofOrganizingtheTrainingDepartment(cont.)CustomermodelResponsibleforthetrainingneedsofonedivisionorfunctionofthecompany.Trainingprogramsaredevelopedmoreinlinewiththeparticularneedsofabusinessgroup.Trainersareexpectedtobeawareofbusinessneedsandtoupdatecoursesandcontenttoreflectthem.Involvesconsiderabletime,programsmayvarygreatlyineffectiveness,anddesignmaybepoor.ModelsofOrganizingtheTrainingDepartment(cont.)MatrixmodelThetrainerhastheresponsibilityofbeingbothatrainingexpertandafunctionalexpert.Ithelpsensurethattrainingislinkedtotheneedsofthebusiness.Trainergainsexpertiseinunderstandingaspecificbusinessfunction.Trainerswillhavemoretimedemandsandconflictsbecausetheyreporttotwomanagers.ModelsofOrganizingtheTrainingDepartment(cont.)Figure2.8-TheCorporateUniversityModelThebusinessembedded(BE)modelischaracterizedbyfivecompetenciesstrategicdirection,productdesign,structuralversatility,productdelivery,and

accountabilityforresult.Itiscustomer-focusedwhencomparedtothetraditionaltrainingdepartment.ModelsofOrganizingtheTrainingDepartment(cont.)Table2.8-ComparisonbetweenaBusiness-EmbeddedTrainingOrganization

andaTraditionalTrainingDepartmentMarketingtheTrainingFunctionMarketingtheTrainingFunction(cont.)Companiesselltrainingservicesforthefollowingreasons:Somebusinessesaresogoodataparticularaspectoftheiroperationthatothercompaniesareaskingfortheirexpertise.Othercompaniesaimtrainingattheirowncustomersordealers.Insomecases,thetrainingdepartmentsellsunusedseatsintrainingprogramsore-learningcourses.Out